Apple backdating options
If, hypothetically, that share price became most optimal for exercise in August, the investor would still have to wait until December to exercise the call option, when it could be out-of-the-money and virtually worthless.
Assume the investor exercised the call option on Apple prior to the expiration date, the investor would be long 100 shares of Apple at the specified strike price.
The majority of exchange-traded options are American.
American options allow the holder to buy or sell a specified underlying asset, on or before a predetermined expiration date.
He also introduces Apple TV and announces the company's name change from Apple announces it will open the i Phone platform to outside developers with the App Store.
Since investors have the freedom to exercise their American options at any point during the life of the contract, they are more valuable than European options, which can only be exercised at maturity.
The last day to exercise a weekly American option is normally on the Friday of the week in which the option contract expires.
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