The distinguishing feature of a European option is the fact that:
A) Its value is determined only on a weekly basis.
B) It never expires.
C) It is issued with a two year minimum exercise period.
D) The strike price is set equal to the market price of the underlying asset.
E) It can only be exercised on the expiration date.

Question

Quizplus · Accepted Answer

European options can only be exercised on the expiration date, unlike American options which can be exercised at any time before the expiration date.

The Distinguishing Feature of a European Option Is the Fact