Chapter 02 · Section 2.1

American Options - Q2

The holder of an American put has:

a) the right -not the obligation- to buy the underlying asset at a fixed price until the expiration date.
• b) the right - not the obligation - to sell the underlying asset at a fixed price at maturity.
  No. The American put option holder can exercise the right to sell the underlying at any time from the purchase date until the option expires. This is in contrast to the European style option which can only be exercised at maturity.
  c) the obligation -but only if he is assigned- to sell the underlying asset at a specified price until maturity.
  d) the right - not the obligation - to sell the underlying asset at a specified price until the expiration date.

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