Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

Does the Black-Scholes Model apply to American Style options?
The difference between an American and European option is that the American option can be exercised at any time, whereas the European option can be liquidated only on the settlement date. The American option is  "continuous time" instrument, while the European option is a "point in time" instrument. Black Scholes applies to the latter, European, option. Under "certain" (but by no means all) circumstances, the two are close enough to be regarded as substitutes. One of their disciples, Robert Merton, "tweaked" it to describe American options. There are debates about this, and other tweaks, years later.