The buyer of an American option has less ﬂexibility with respect to the date of exercise than the
buyer of an otherwise identical European option.

Name: The buyer of an American option has less ﬂexibility with respect to the date of exercise than the buyer of an otherwise identical European option.
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Question

Quizplus · Accepted Answer

An American option provides more flexibility as it can be exercised at any time before expiration, unlike a European option which can only be exercised at expiration.

The Buyer of an American Option Has Less ﬂExibility with Respect