European options

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Stock Trading To Go  Mar 25  Comment 
Some of the most actively traded options are European style and investors must be aware of the differences between European and American options.
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A European option is an option that can only be exercised at expiration. No early exercise is permitted with European options in contrast to American options.

All options traded on individual stocks are American options. Most options traded on indexes are European options although some are traded as American options (the S&P 100 (OEX) and the Oil Index (XOI)).

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