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American Option
Definition
This is an option that can be exercised on any day up until its expiration. This is also called an American-style options or American-style exercise.
Using the term American Option :
If you want more optionality in your options, choose American-style options as opposed to European-Style options which limit your optionality.
Pay Special Attention To :
In general, when buying options and derivatives, make sure you know full well your risk or that you are working with a knowledgeable professional.
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Related terms
Call Option , Put Option , Derivatives , Zero-Cost Collar
