Types and Styles of Options

By Underlying Asset:

1. Equity Options: Options on individual stocks.
2. Index Options: Options on stock indices.
3. Commodity Options: Options on physical goods like gold or oil.
4. Currency Options: Options on foreign exchange rates.
5. Interest Rate Options: Options on interest rate instruments.

By Type:

1. Call Options: Provide the holder the right to buy the underlying asset at the strike price before or on the expiration date.
2. Put Options: Provide the holder the right to sell the underlying asset at the strike price before or on the expiration date.

By Style:

1. American Options: Can be exercised at any time up to and including the expiration date.
2. European Options: Can only be exercised on the expiration date.
3. Bermudan Options: Can be exercised on specific dates prior to expiration.

By Settlement:

1. Physical Settlement: Involves the actual delivery of the underlying asset upon exercise.
2. Cash Settlement: Involves a cash payment reflecting the difference between the market price and the strike price upon exercise.