Which of the following statements is true regarding American and European options?
A) American options can be exercised only at expiration.
B) American options can be exercised only in the last week prior to expiration.
C) European options can be exercised only at expiration.
D) European options can be exercised any time prior to expiration.

Question

Quizplus · Accepted Answer

European options can only be exercised at expiration, whereas American options can be exercised at any time before expiration.

Which of the Following Statements Is True Regarding American and European