Question

European options can be exercised ______

• A. on weekdays
• B. only on the expiration date itself
• C. any time up to the expiration date
• D. after the expiration date

Hint:

European options allow exercise only on the expiration date, unlike American options which can be exercised anytime before expiry.

Answer 1

The Correct Option is B

European options permit exercise solely on their expiration date, unlike American options which allow exercise at any point up to and including expiration. Consequently, holders of European options must observe the expiration date for exercise, ensuring a fixed and predictable exercise timing.