Question

What distinguishes an American Option from a European Option based on maturity date?

a.

American Options can only be exercised on the maturity date.

b.

European Options can be exercised at any time up to the maturity date.

c.

American Options and European Options have the same exercise conditions.

d.

European Options can only be exercised on the maturity date.

Answer: (b).European Options can be exercised at any time up to the maturity date. Explanation:The distinction lies in the exercise conditions. European Options can only be exercised on the maturity date, while American Options can be exercised at any time up to the maturity date.

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Q. What distinguishes an American Option from a European Option based on maturity date?

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