Chapter 02 · Section 2.1

European vs. American options

An option may be exercised during a specific period only. This leads us to the important distinction between:

AMERICAN OPTIONS and EUROPEAN OPTIONS

An American option:

• a) can be exercised at any time before the expiration date.
  Yes. American options can be exercised at any time during the option life. On the contrary, European Options can only be exercised at maturity. Continue
  b) can only be exercised at maturity.

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