Task: Class Definition Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes 'American exercise terms'?

A. exercise terms that stipulate that an option may only be exercised on predetermined dates within some exercise window, often on one day each month or at the date of expiration
B. exercise terms that stipulate that an option may be exercised on or before the date of expiration
C. exercise terms that stipulate that an option may only be exercised at the date of expiration
D. exercise terms that stipulate that an option may only be exercised on predetermined dates until the first step is reached, but not after that point

Answer: exercise terms that stipulate that an option may be exercised on or before the date of expiration