European Style Options can only be exercised when they expire. Most Index Options are European Style, but Stock Options are normally American Style. European Style Options are viewed as less valuable than American Style to Option buyers because the Exercise terms are more restrictive, but Sellers of Options (Options Writers) may view the lack of Early Assignment risk to be an advantage.
Contributed by: Ralph Windsor
External Links
Option Stylehttps://en.wikipedia.org/wiki/Option_style
Wikipedia article on Option Styles. Covers more than European and American definitions and includes some more obscure styles also.
European Stylehttp://www.investopedia.com/terms/e/europeanoption.asp
Investopedia definition of European Style Options.
Option Styles: American Vs. Europeanhttp://www.learningmarkets.com/option-styles-american-vs-european/
Detailed explanation of American vs European style options.
European Style Optionshttp://www.call-options.com/european-call-option.html
Introductory article discussing European Style Options.
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