Skip to main content

What Is the Difference between an American and European Style Option in Terms of Exercise?

An American-style option can be exercised by the holder at any time up to and including the expiration date. A European-style option can only be exercised on the expiration date itself.

European-style options are generally simpler to price and are the standard for most major crypto options exchanges. The flexibility of American options gives them a slightly higher premium.

What Is the Difference between American-Style and European-Style Options Exercise?
How Does a ‘European’ Style Option Restrict the Exercise Relative to an ‘American’ Style Option?
What Is the Primary Difference between an American and European Style Option in a Tokenized Environment?
What Is the Difference between ‘American’ and ‘European’ Style Options?