Which of the following is a difference between an American and a European option?
A) A European option can be exercised any time until maturity.
B) A call option is a European option while a put option is an American option.
C) European options have a higher price than American options.
D) European options can only be exercised at maturity.
E) A put option is a European option while a call option is an American option.

Question

Quizplus · Accepted Answer

The primary difference between American and European options is that American options can be exercised at any time up to and including the expiration date, whereas European options can only be exercised at the expiration date.

Which of the Following Is a Difference Between an American