Meaning of “American option” in the English Dictionary


"American option" in Business English

See all translations

American optionnoun [ C ]

uk us 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

(Definition of “American option” from the Cambridge Business English Dictionary © Cambridge University Press)