An option contract that can be exercised at any time on or before its expiry date.
An American-style option can be exercised by the holder at any point up to and including the expiry date, offering more flexibility than a European-style option. Most stock options traded on Indian exchanges are cash-settled and follow European-style exercise rules, but the American-style structure is still relevant for traders dealing in global markets or certain commodity and currency derivatives where early exercise is permitted.
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