What is the difference between an American call option and a European call option?
A) The European call has a final exercise date.
B) The American call trades only on domestic stocks.
C) The European call can be exercised only on one day.
D) The American call generates profits regardless of which direction the stock moves.

Question

Quizplus · Accepted Answer

An American call option can be exercised at any time before expiration, while a European call option can only be exercised on its expiration date.

What Is the Difference Between an American Call Option and a European