The Difference Between an American Call Option and a European

question 23

Multiple Choice

The difference between an American call option and a European call option is:

• A) the European call has a final exercise date.
• B) the American call trades only on domestic stocks.
• C) the European call can be exercised only on one day.
• D) the American call generates profits regardless of which direction the stock moves.

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Definitions:

Anatomical Direction

Terms used to describe the locations and orientations of structures within the body relative to other structures or locations, such as anterior, posterior, superior, and inferior.

Inferior

Anatomical term meaning below or closer to the feet; also called caudal.

Chemical Reactions

Processes that involve the rearrangement of molecular or ionic structure of substances, resulting in the formation of one or more new products.

Matter

Anything that occupies space and has mass, composed of atoms and molecules and existing in solid, liquid, gas, or plasma states.