American option

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American option

An option that may be exercised at any time up to and including the expiration date. Related: European option

American Option

An option contract that may be exercised at any time on or before the expiration date. For example, if one buys an American call giving him/her the right to buy shares in X expiring on the final Friday in March, the call may be exercised at any time on or before the final Friday in March. The differentiating feature of an American option is the fact that its value varies according to the value of the underlying asset over the life of the contract. This means that a holder may wait for an advantageous price and exercise the option. This contrasts with a European-style option, which may only be exercised on the expiration date.

American option

A put or call option that permits the owner to exercise the option at any time on or before the expiration date.
References in classic literature ?
While writing this book, fully a quarter of a century since, it occurred to us that the French name of this lake was too complicated, the American too commonplace, and the Indian too unpronounceable, for either to be used familiarly in a work of fiction.
They say that when good Americans die they go to Paris," chuckled Sir Thomas, who had a large wardrobe of Humour's cast-off clothes.
The American people have summoned the change we celebrate today.
It was the last thing that the American ever heard in this life.
Passepartout was astounded, and, though ready to attempt anything to get over Medicine Creek, thought the experiment proposed a little too American.
It was a most important and memorable event, this first coming together of the American people by their representatives from the North and South.
The Rocky Mountains formed a vast barrier between them and the United States, and their stern and awful defiles, their rugged valleys, and the great western plains watered by their rivers, remained almost a terra incognita to the American trapper.
boss = Cooper was annoyed by American euphemisms, such as using the Dutch word "boss" in place of "master"--a custom he blamed largely on New England "Yankees"}
The American press discussed his life and work in numerous and lengthy reviews.
He was aware of the wish of the American government, already stated, that the fur trade within its boundaries should be in the hands of American citizens, and of the ineffectual measures it had taken to accomplish that object.
The American coast also might be pretty--he hardly knew what one would expect of an American coast; but he was sure it would be different.
She is very pretty, and always wears a black dress, with the most beautiful fit; she speaks a little English; she tells me she had to learn it in order to converse with the Americans who come in such numbers to this hotel.

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