An American call option gives the buyer 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 call option gives the buyer the right to buy the underlying asset at the exercise price on or before the expiration date. This means that the option holder can exercise the option at any time before the expiration date and buy the underlying asset at the exercise price.

An American Call Option Gives the Buyer the Right to ________