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      Course Overview
      • Introduction to Options
      • Understanding Option Contract Details
      • Get to Know Underlying (Options on Futures)
      • What is Exercise Price (Strike)?
      • What is Expiration Date (Expiry)?
      • Explaining Call Options (Short and Long)
      • Explaining Put Options (Short and Long)
      • Understanding AM/PM Expirations
      • Learn About Exercise and Assignment
      • Understanding the Difference: European vs. American Style Options
      • Calculating Options Moneyness & Intrinsic Value
      • Understanding Options Expiration (Profit and Loss)
      • Introduction to Options Theoretical Pricing
      • Discover Options Volatility
      • Put-Call Parity
      • Options on Futures vs ETFs
      Introduction to Options
      You completed this course.Get Completion Certificate

      Understanding the Difference: European vs. American Style Options

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      American Versus European Style Options

      European and American style options are not regional options. They are actually terms used to describe two different types of option exercise.

      European Style Options: can be exercised only at expiration.

      American Style Options: can be exercised at any time prior to expiration.

      The majority of CME Group options on futures are European style and can be exercised only at expiration. Some of the notable exceptions that have American style expiration are the quarterly options on the S&P500 futures contracts, Eurodollar options, and Treasury options.

      Even though most CME Group options are European-style and can be exercised only at expiration, it is important for traders to understand style of option they are interested in trading.


      Test Your Knowledge

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