An option contract that can only be exercised on its expiry date, not before.
A European-style option can only be exercised on the expiry date itself, not at any point before it. Index options in India, such as those on Nifty and Bank Nifty, are European-style, which removes the risk of early assignment that exists with American-style contracts. This makes strategy planning more predictable, since a European option seller only needs to worry about assignment risk on the final settlement day.
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