A more thorough explanation:

Definition: American National Standards Institute is a private nonprofit organization that was founded in 1918. It administers the standardization and conformity-assessment system in the United States and coordinates voluntary participants in the system. It is abbreviated as ANSI.

Definition: An American option is a type of option that can be exercised on any day, including its expiration date. It gives the holder the right (but not the obligation) to buy or sell a given quantity of securities, commodities, or other assets at a fixed price within a specified time. This is different from a European option, which can only be exercised on its expiration date.

Example: If you hold an American call option on a stock, you can exercise the option at any time before its expiration date to buy the stock at the fixed price. This gives you more flexibility than a European call option, which can only be exercised on the expiration date.

Definition: A call option is an option to buy something, especially securities, at a fixed price even if the market rises. It gives the holder the right to require another party to sell the underlying asset.

Example: If you hold a call option on a stock, you have the right to buy the stock at the fixed price even if the market price of the stock rises. For example, if you hold a call option to buy 100 shares of XYZ stock at $50 per share, you can exercise the option to buy the shares at $50 per share even if the market price of the stock is $60 per share.

Definition: A put option is an option to sell something, especially securities, at a fixed price even if the market declines. It gives the holder the right to require another party to buy the underlying asset.

Example: If you hold a put option on a stock, you have the right to sell the stock at the fixed price even if the market price of the stock declines. For example, if you hold a put option to sell 100 shares of XYZ stock at $50 per share, you can exercise the option to sell the shares at $50 per share even if the market price of the stock is $40 per share.