Due to the influence of volatility and unexpired factors, American options will get less income than the increase of investment target, such as 10%, and may get 8.5% income from investment target under the strategy. If it is a European option, it will not be affected by these factors, and it will get full income at maturity. ?

2. The question of opening price. ?

(1) There are three opening prices of American options: immediate price, weighted average price and closing price. In addition to the immediate price, the other two prices can be closed on the same day, providing customers with receipts. Due to price fluctuation, the instant price may not be closed on the same day, but it may take two or three days to get the receipt.

(2) European options will get a receipt on the same day, and the agreed price is the initial price, and the final price is also subject to the price calculation method selected at the beginning. ?

3. The price of royalties. ?

Theoretically speaking, American options are more expensive than European options. After all, American options can be exercised in advance. ?

American options are more flexible.

American options can be exercised on the contract expiration date and every trading day before the expiration date, while European options can only be exercised on the contract expiration date. Obviously, American options are more flexible for buyers. ?

5. American option is beneficial to the risk control of the buyer.

Buyers of American options can avoid risks well. They can choose to exercise at any time that is beneficial to them, so that the market price of the underlying product that deviates from their own value will gradually return to value, maintain the rational operation of the market, and prevent the centralized exercise from impacting the market when the option expires.

Extended data:

There is no difference between American options and European options. Intuitively, since their investment option is a right, the more flexible this right is, the more valuable it should be. American options are more flexible than European options, which seems to conform to such an intuitive idea. Many people think that American options should be more valuable than European options.

But in fact, after they explain how to calculate the value of options, you will know that the value of American options and European options should be equal except for cash dividends and other factors.

In fact, there is a third option between American option and European option, namely Atlantic option or Bermuda option. Literally, you can easily see that the performance terms of this option are between America and Europe (the Atlantic Ocean and Bermuda are between America and Europe).

References:

American Options-Baidu Encyclopedia

European Options-Baidu Encyclopedia