Question

One issue that has come to light is the two kinds of options, ie. American options and European options. What have you learned about these two items that will be useful in your understanding of options

Answer 1

Answer and Explanation:

If you are referring to the American and European style of investment, the most useful information about these two options is freedom that the investor has in relation to the term of the contract. This is because, in relation to this freedom, the American option is more advantageous, since it allows investors to act at any time before the contract expires, while the European version only allows investors to act on the expiration day.