European Option

Only exercisable at expiration

What is European Option?

European Option An option that can only be exercised at expiration, not before. Index options (SPX, NDX) are typically European-style. Avoids early assignment risk.

Complete Definition

An option that can only be exercised at expiration, not before. Index options (SPX, NDX) are typically European-style. Avoids early assignment risk.

Related Terms

American Option Exercise Index Options

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