Explain the Difference Between American and European Options

question 12

Essay

Explain the difference between American and European options.

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Definitions:

Neoprene

A synthetic rubber produced by the polymerization of chloroprene, noted for its chemical stability and used in various products such as wetsuits and hoses.

Addition Polymer

A type of polymer formed by the sequential addition of monomer units with unsaturated bonds, such as olefins, to form long chains without the loss of any small molecules.

Condensation Polymer

A type of polymer formed by the condensation reaction where two molecules combine with the elimination of a small molecule, often water, between them.

Lactam Monomers

The monomeric units that can polymerize to form polyamides, where the repeating units contain a lactam ring.