Editing Option style (section)

{{Short description|Class in which an option falls in finance}}
In finance, the '''style ''' or '''family''' of an [[option (finance)|option]] is the class into which the option falls, usually defined by the dates on which the option may be [[Exercise (options)|exercised]]. The vast majority of options are either '''European''' or '''American''' (style) options. These options—as well as others where the [[Option time value#Intrinsic value|payoff]] is calculated similarly—are referred to as "[[vanilla option]]s". Options where the payoff is calculated differently are categorized as '''"[[exotic option]]s"'''. Exotic options can pose challenging problems in [[financial mathematics|valuation]] and [[hedge (finance)|hedging]].