An Option which can be exercised at any time between the Purchase date and the Expiration date. Most options in the U.S. are of this Type. This is the opposite of a European-style option, which can only be exercised on the date of expiration. Since an American option provides an investor with a greater degree of flexibility than a European Style option, the premium for an American style Option is at least equal to or higher than the premium for a European-style option which otherwise has all the same features. also called American-style option.
