Know about Option styles....

Option styles

Settlement of options is based on the expiry date. However, there are three basic styles of options you will encounter which affect settlement. The styles have geographical names, which have nothing to do with the location where a contract is agreed! The styles are:
European: These options give the holder the right, but not the obligation, to buy or sell the underlying instrument only on the expiry date. This means that the option cannot be exercised early. Settlement is based on a particular strike price at expiration. Currently, in India only index options are European in nature.
eg: Sam purchases 1 NIFTY AUG 1110 Call --Premium 20. The exchange will settle the contract on the last Thursday of August. Since there are no shares for the underlying, the contract is cash settled.
American: These options give the holder the right, but not the obligation, to buy or sell the underlying instrument on or before the expiry date. This means that the option can be exercised early. Settlement is based on a particular strike price at expiration.
Options in stocks that have been recently launched in the Indian market are "American Options".
eg: Sam purchases 1 ACC SEP 145 Call --Premium 12
Here Sam can close the contract any time from the current date till the expiration date, which is the last Thursday of September.
American style options tend to be more expensive than European style because they offer greater flexibility to the buyer.
Option Class & Series
Generally, for each underlying, there are a number of options available: For this reason, we have the terms "class" and "series".
An option "class" refers to all options of the same type (call or put) and style (American or European) that also have the same underlying.
eg: All Nifty call options are referred to as one class.
An option series refers to all options that are identical: they are the same type, have the same underlying, the same expiration date and the same exercise price.

Calls				Puts
	JUL	AUG	SEP	JUL	AUG	SEP
Wipro
1300	45	60	75	15	20	28
1400	35	45	65	25	28	35
1500	20	42	48	30	40	55

eg: Wipro JUL 1300 refers to one series and trades take place at different
premiums

All calls are of the same option type. Similarly, all puts are of the same option type. Options of the same type that are also in the same class are said to be of the same class. Options of the same class and with the same exercise price and the same expiration date are said to be of the same series