The Distinction Between American and European Options Is That

question 7

Multiple Choice

The distinction between American and European options is that:

• A) American options trade in the United States,while European options trade in Europe
• B) American options can be exercised at any time until expiration,while European options can only be exercised at the time of expiration
• C) American options have a capped payoff,while European options traders can have unlimited profits or losses
• D) American options end in physical delivery of the underlying asset,while European options end in cash settlement
• E) None of these answers are correct.

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Definitions:

Absorption

The process by which substances are taken up into or across tissues, such as the absorption of nutrients by the intestines.

Anaphylactic Reaction

A severe, potentially life-threatening allergic reaction that can occur rapidly after exposure to an allergen.

Medication Allergy

An adverse immune response or hypersensitivity to a drug, which can range from mild rash to life-threatening reactions.

Bronchiolar Muscles

Smooth muscle tissues found in the walls of the bronchioles in the lungs, which contract and relax to regulate airflow.