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.
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.
An American style option can be exercised at any time until maturity, whereas a European style option can only be exercised at maturity.