Do High Gas Fees Disproportionately Affect American-Style Options Compared to European-Style Options Due to the Exercise Flexibility?

Yes, high gas fees disproportionately affect American-style options. European-style options can only be exercised at expiration, resulting in a single, predictable on-chain transaction.

American-style options can be exercised at any time before expiration, which means the holder may need to make a time-sensitive on-chain transaction to exercise the option profitably. The unpredictability and potential high cost of gas can deter early exercise, effectively eroding the primary advantage of an American option and making it behave more like a less-valuable European option.