A LONG position in an American call option ______.

A. gives the investor only the rights that a LONG position in an identical European call option would give him
B. gives the investor an extra right that a LONG position in an identical European call option would not give him
C. can only be exercised on the option's expiration date

Correct Answer: B

An American option may be exercised prior to the expiration date. This represents a right not allowed by a European option.