An American Option Differs from a European Option
An American option can be exercised at any time before the expiration date, whereas with a European option, you must wait until the specified expiration date.
Additionally, dividends are an important factor. Will the holder of the underlying stock of the option receive dividends before the option’s expiration date?
The matrices summarized below provide the valuation methods for Call & Put options, considering these details.
Source:
Principles of Corporate Finance – by F. Allen, R. A. Brealey, & S. Myers