European options can only be exercised on the expiration date, while American options can be exercised on any date before the expiration.

European options can only be exercised on the expiration date, while American options can be exercised on any date before the expiration. Intuitively, American options should be more popular among investors. However, we rarely see American options being traded on today’s market.

Explain why most of the options on the market are European options.