An American put option gives its holder the right to ________.
A) buy the underlying asset at the exercise price on or before the expiration date
B) buy the underlying asset at the exercise price only at the expiration date
C) sell the underlying asset at the exercise price on or before the expiration date
D) sell the underlying asset at the exercise price only at the expiration date

Question

Quizplus · Accepted Answer

An American put option gives the holder the right to sell the underlying asset at the exercise price on or before the expiration date. This means the holder can choose to sell the asset at any time up to and including the expiration date.

An American Put Option Gives Its Holder the Right to ________