Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Why are American-style options worth more than European-style options?
An option gives you an option.  That is, you aren't buying any security - you are simply buying an option to buy a security.  The sole value of what you buy is the option to buy something. An American option offers more flexibility - i.e. it offers you more options on buying the stock.  Since you have more options, the cost of the option is higher. Of course, a good example makes sense why this is the case.  Consider the VIX.  Options on the VIX are European style.  Sometimes the VIX spikes like crazy - tripling in value in days.  It usually comes back down pretty quick though - within a couple of weeks.  So far out options on the VIX aren't worth just a whole lot more, because the VIX will probably  be back to normal.  However, if the person could have excercised them right when it got to the top, they would have made a fortune many times what their option was worth.  Since they are Euroopean style, though, they would have to wait till their option was redeemable, right when the VIX would be about back to normal.  In this case, an American style option would be far more valuable - especially for something that is difficult to predict, like the VIX.