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
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

American option

A put or call option that permits the owner to exercise the option at any time on or before the expiration date.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
References in periodicals archive ?
With just three returning starters on offense, Buchanan will shift into more of a shotgun flexbone option style of offense to take advantage of an improving offensive line and some talent at the skill positions.