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 are a type of options contract that can be exercised only on the expiration date and not before.
This contrasts with American options, which can be exercised any time up to and including the expiration date.
Thus, the holder of a European option must wait until the expiry date to exercise the option, which makes the timing of exercise fixed and predictable.