An American call option can be exercised
A) any time on or before the expiration date.
B) only on the expiration date.
C) any time in the indefinite future.
D) only after dividends are paid.
E) None of the options are correct.

Question

Quizplus · Accepted Answer

An American call option gives the holder the right, but not the obligation, to buy the underlying asset at a specified price on or before the expiration date. This flexibility to exercise the option at any point up until expiration is what distinguishes American options from European options, which can only be exercised on the expiration date.

An American Call Option Can Be Exercised