The Primary Difference Between an American Call Option and a European

question 99

Multiple Choice

The primary difference between an American call option and a European call option is the fact that the American call:

• A) has a fixed strike price while the European strike price varies over time.
• B) is a right to buy while a European call is an obligation to buy.
• C) has an expiration date while the European call does not.
• D) is written on 100 shares of the underlying security while the European call covers 10 shares.
• E) can be exercised at any time prior to expiration while the European call can only be exercised on the expiration date.

---

Definitions:

Philanthropy Model

A business strategy that incorporates charitable activities or donations as a core part of its operations to support social causes.

Volunteer Hours

The time donated by individuals to work for an organization or cause without financial compensation.

Sustainability Vision

A strategic approach that integrates environmental, social, and economic considerations into long-term business planning with the goal of fostering resilience and responsibility.

Stakeholders

Individuals, groups, or organizations that have an interest or concern in an organization's activities, performance, and decisions.