What Is the Key Difference between a ‘Call’ and a ‘Put’ Option in the Context of American-Style Exercise?

Both American calls and puts can be exercised at any time before expiration. A call option gives the right to buy the underlying asset (e.g.

Bitcoin) at the strike price. A put option gives the right to sell the underlying asset at the strike price.

The decision to exercise early depends on different conditions for each. For instance, early exercise of an American call is generally only rational if the underlying asset pays a dividend, which is less common in crypto.