Explain why an American option is always worth at least as much as a European option on

Question:

Explain why an American option is always worth at least as much as a European option on the same asset with the same strike price and exercise date.
Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question
Question Posted: