An option that can be exercised only at expiry as opposed to an American Style option that can be exercised at any time from inception of the contract. European Style option contracts can be closed out early, mimicking the early exercise property of American style options in most cases.

An option where the holder has the right to exercise the option only on its expiry date. Contrast to an American style option, where the holder can exercise up to and including the expiry date.

It gives the buyer the right to exercise the option only on the expiry date.