The Main Difference Between an American and a European Option

question 61

Multiple Choice

The main difference between an American and a European option is that

• A) European options are priced in Euros and American options are priced in dollars.
• B) American options can be exercised at any time until expiration while European options can only be exercised on expiration date
• C) European options can be exercised at any time until expiration while American options can only be exercised on expiration date
• D) American options are standardized contracts while European options are not.

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Definitions:

Production Methods

Techniques and processes used in the creation of goods or services, encompassing everything from materials selection and use of technology to labor and manufacturing practices.

Management Decisions

Choices or judgments made by the management of an organization regarding its operations, strategy, and resource allocation.

Seniority-Based

A system or practice where decisions on promotions, layoffs, and benefits are made based on the length of an employee's service within an organization.

Union-Mandated

Requirements or actions imposed by labor unions, often through collective bargaining or union regulations, that employers must follow.