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Why Do Crypto Exchanges Prefer European-Style Options for Settlement?

Crypto exchanges often prefer European-style options because their fixed expiration date simplifies the settlement process. It eliminates the need for continuous monitoring and management of potential early exercise, streamlining operations and reducing computational overhead.

This allows for a clean, single-point settlement.

What Are the Key Differences between American, European, and Bermudan Style Options in the Context of Cryptocurrency Derivatives?
Why Are Most Physically-Settled Crypto Options Typically European-Style?
Is Execution Risk Higher for an American-Style Option or a European-Style Option?
How Does “American Style” Options Settlement Differ from “European Style” in a PoC Context?