that may only be exercised on its expiration date
. An American option
, in comparison, may be exercised at any time before and up to its expiration date. The payoff
of an European option (like that of an American option) depends on the average price
of the underlying asset
as on a specific date and (unlike that of an Asian option) not over a period
. These option names
, however, refer only to the types of options and not to any geographical area. Also called European-style option.