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American-style options are characterized by the flexibility that they can be exercised at any point up until their expiration date. This allows the holder to take advantage of favorable market conditions whenever they arise. In contrast, European-style options can only be exercised at the expiration date, which limits the holder's ability to react to market movements during the life of the option. This key difference significantly influences trading strategies, as American-style options tend to offer more opportunities for profit realization through timely exercise.

The question illustrates a fundamental aspect of options that traders must understand when making decisions about their investments. It's essential to recognize these distinctions, as they can impact the value and strategy associated with different types of options in the market.