A European option on a stock is more valuable than an otherwise similar American option on the same stock.

Name: A European option on a stock is more valuable than an otherwise similar American option on the same stock.
Brand: Quizplus
Rating: 4.8 (33 reviews)

Question

Quizplus · Accepted Answer

A European option can only be exercised at expiration, while an American option can be exercised at any time before expiration, potentially making the American option more valuable due to its greater flexibility.

A European Option on a Stock Is More Valuable Than