Which of the following best describes the difference between American and European options?
A) They are traded on different exchanges.
B) They are for different currencies.
C) They use different exchange rate quotations.
D) None of these.

Question

Quizplus · Accepted Answer

American and European options differ primarily in their exercise rights; American options can be exercised at any time before expiration, while European options can only be exercised at expiration. The choices provided do not accurately describe this fundamental difference.

Which of the Following Best Describes the Difference Between American