American options allow their holders to exercise the option only on the expiration date.

Name: American options allow their holders to exercise the option only on the expiration date.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is not true for American options. In fact, American options allow their holders to exercise the option at any point prior to the expiration date, whereas European options can only be exercised on the expiration date.

American Options Allow Their Holders to Exercise the Option Only