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.

---

Definitions:

Montagnards

A political group during the French Revolution, seated on the highest benches of the assembly, known for their radical views and support for extreme measures including the reign of terror.

Free Public Education

The provision of education that is government-funded and available to all individuals without charge.

Higher Wages

Increased monetary compensation for labor, reflecting an elevation in the standard rate paid to workers, often sought after in negotiations between employers and employees or labor unions.

Great Britain

A sovereign country in northwestern Europe, comprising England, Scotland, and Wales, known for its influential role in global politics, economy, and culture.