What is the difference between American and European options?
American options allow the holder to exercise the option at any time during the life of the option. With European options, on the other hand, the holder can only exercise the option on its expiry date. S&P Canada 60 Index options (SXO) are European style. All stock options traded on MX are American style, which gives investors more flexibility. However, this extra privilege comes at a price that is built into the option premium, which is why the value of American options is usually higher than the value of European options.
