The primary difference between an American option and a European option is the:
A) Size of the option contract.
B) The length of the option contract.
C) Time at which the option can be exercised.
D) The number of shares of the underlying asset.
E) The size of the option premium.

Question

Quizplus · Accepted Answer

The primary difference between an American option and a European option lies in the time at which the option can be exercised. American options can be exercised at any time up to the expiration date, while European options can only be exercised on the expiration date itself.

The Primary Difference Between an American Option and a European