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Consider the fact that European options can only exercised only at expiration, whereas American options can be exercise at any time up to and including the expiration date. Therefore, does it make sense to say that an American option would be more difficult to value?
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Solution Summary
Are American options most difficult to value versus European options are examined.
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It does in a way. Due to the fact that European options are only exercised at expiration, they only have to be valued at that time in terms of the difference of ...
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