In Options trading, what do CE and PE denote?

By Research Desk
about 3 years ago

In options trading, notation used to denote the derivate instrument is Infy CE 2800 or Reliance PE 980. The CE and PE stand for:

CE - Call option European-style settlement
PE - Put option European-style settlement

CA - Call option American-style settlement
PA - Put option American-style settlement

European-style options can be exercised only on the expiry day while American-style options can be exercised any time prior to expiry. In India, all stock as well as index options are European i.e. can be exercised only on the day of expiry. Earlier, stock options were American style while index options were European style.

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