An option that can only be exercised on expiration date. An American-style option, in contrast, may be exercised at any time before, and including, expiration date. Like American-style options, the payoff of European-style options is a function of the average price of the underlying asset as on a particular date. In comparison, the payoff of Asian options depends on the average price of the underlying asset over a specific period. Such option names (American, Asian, European, etc) don’t refer to a specific geographical area. Instead, they are just types of options that can be traded anywhere.
European-style options are classified as European-style call options and European-style put options.
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