The Buyer of an American Option Has Less Flexibility with Respect

question 294

True/False

The buyer of an American option has less flexibility with respect to the date of exercise than the buyer of an otherwise identical European option.

---

Definitions:

Emerging Industries

Sectors that are in their initial stage of development, often characterized by high innovation and growth potential.

Production Chain

A series of steps involved in producing a product, from raw material extraction to the final goods being made available to consumers.

Services

Economic activities that provide intangible benefits or goods, such as healthcare, education, and entertainment.

Manufacturing

The process of converting raw materials or components into finished goods using tools, human labor, machinery, and chemical processing.