A European option can only be exercised at the expiration date, while an American option can be exercised any time prior to the expiration date.

Name: A European option can only be exercised at the expiration date, while an American option can be exercised any time prior to the expiration date.
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Question

Quizplus · Accepted Answer

A European option can only be exercised at its expiration date, whereas an American option allows the holder to exercise it at any time up to and including the expiration date.

A European Option Can Only Be Exercised at the Expiration