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Why Are European Options Generally Easier to Price than American Options?

European options are easier to price because they can only be exercised on the expiration date, simplifying the calculation of their theoretical value. American options, which can be exercised anytime, require more complex models to account for the optimal time to exercise before expiration.

This complexity makes the Black-Scholes model more suitable for European options.

What Role Do European Vs. American Style Options Play in the Risk Management of a Covered Call?
What Is the Concept of ‘Early Exercise Premium’ in American Options?
Why Do American Options Typically Have a Higher Premium than European Options?
Why Are European-Style Options More Common than American-Style Options in Decentralized Options Protocols?