The Difference Between an American Call and a European Call

question 63

Multiple Choice

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

• A) has a fixed exercise price while the European exercise price can vary within a small range.
• 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 1,000 shares.
• E) can be exercised at any time up to the expiration date while the European call can only be exercised on the expiration datE.

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