European Style Option

Categories: Finance,

A listed option that you can exercise only on the last trading day before the expiration date is called a european style option whether it trades on a US exchange, a European exchange, or elsewhere in the world. For example, many index options listed on various US exchanges are European-style options. In contrast, you can exercise an american style option at any point between the day you purchase it and its expiration date. All equity options are American style, no matter where the exchange on which they trade is located.