All else the same, an American-style option will be ________ valuable than a ________ style option.
A) more; European-
B) less; European-
C) more; Canadian-
D) less; Canadian-

Question

Quizplus · Accepted Answer

American-style options give the holder the right to exercise at any point until expiration, whereas European-style options can only be exercised at expiration. This added flexibility makes American-style options more valuable than European-style options. Canadian-style options are less common and have different contract specifications, but typically have features that are a hybrid of American and European styles.

All Else the Same, an American-Style Option Will Be ________