What Is the Primary Difference Between an American Call Option

question 45

Multiple Choice

What is the primary difference between an American call option and a European call option?

• A)The American call has a fixed strike price while the European strike price varies over time.
• B)An American call is a right to buy while a European call is an obligation to buy.
• C)An American call has an expiration date while the European call does not.
• D)An American call is written on 100 shares of the underlying security while the European call covers 1,000 shares.
• E)An American call an 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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