Answer-first summary for fast verification
Answer: False
**False.** Even with an initial lockout or vesting restriction, the option still retains some additional value from the possibility of **early exercise** once the restriction ends. Therefore, it should still be worth **more than** its European-style counterpart, not less.
Author: Manit Arora
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Q-11(c). For each of the following, is the answer true or false?
True or false: A nonstandard American option with an initial lockout (“vesting restrictions”) ought to be worth less than its European style analog
A
True
B
False
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