A European put option can be exercised

A) any time in the future.
B) only on the expiration date.
C) if the price of the underlying asset declines below the exercise price.
D) immediately after dividends are paid.

European Put Option

A financial contract that gives the holder the right, but not the obligation, to sell a specified asset at a predetermined price before or at a specified expiration date, exercisable only at the expiration.

Expiration Date

Refers to the date on which a derivative contract (such as options or futures) ceases to exist and its right to execute is no longer valid.

Exercise Price

The exercise price is the price at which an option holder can buy (call option) or sell (put option) an underlying asset or security.