American Option

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Definition: American Option

The name of this term is deceiving; on the contrary, American Option refers to an option with the provision that it can be exercised at any time until its maturity date.

On the other hand, a European option is one which can be exercised only at that particular date.

As a matter of fact, American options are the ones which are majorly traded on exchanges and as they provide much more flexibility, they are more valuable.

Browse the definition and meaning of more terms similar to American Option. The Management Dictionary covers over 7000 business concepts from 6 categories. This definition and concept has been researched & authored by our Business Concepts Team members.

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