Answer (B) is correct . An American option is a contractual arrangement that gives the owner the right to buy or sell an asset at a fixed price at any moment in time before or on a specified date. A European option is exercisable only at the expiration date.
Answer (A) is incorrect because A call option may be a European option or an American option.
Answer (C) is incorrect because An American option is exercisable at any time up to its expiration.
Answer (D) is incorrect because A put option may be a European option or an American option.
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