The Russian Options
In the European and American options of option pricing theory, the time period between the time the option is purchased and the time at or before which the option has to be exercised is fixed and known. If the purchase time is taken to be t = 0 and the exercise time t = T, then the European option pricing theory requires the option to be exercised at t = T (the date of maturity) while under the American option, you can exercise it at any time up to T and moreover, the exercise time can be random.
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