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English definition of “American option”

American option

noun [C]
 
 
( also American-style option)
FINANCE an option (= right to buy in the future at a particular price) to buy particular shares at any time before their end date: Adjustments to option prices as a result of early exercise of American options are worked into the calculations at the required point in time. an American-style option on the Major Market Index (MMI) of US blue chip stocks →  Compare Asian option , European option
(Definition of American option from the Cambridge Business English Dictionary © Cambridge University Press)
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