American option

noun [C] (also American-style option)

Definition

› 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 noun from the Cambridge Business English Dictionary © Cambridge University Press)