WHAT IS A EUROPEAN OPTION? Straight to the Point #STTP #163

In around two minutes you will know what is a European Option. You will get both professional definition and easy explanation. No intro, no outro, straight to the point.

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European Option is a variation of an option contract, that allows its holder to exercise his or her rights only at a day of expiration.

And if you are not sure what an option means, feel free to watch one of my previous videos.

Both put and call options have expiration dates.

Which means that by that time you either have to exercise your option right, or let it expire worthless.

And European option means that whether you decide to exercise your rights, you can only do it at a date of expiration of such option.

Imagine, you bought a European put option with the expiration date of June 18th 2021.

It means that you can use it and sell underlying securities only on June 18th 2021.

As simple as that.

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