A/An ________ Option Can Be Exercised Only on Its Expiration

question 72

Multiple Choice

A/An ________ option can be exercised only on its expiration date, whereas a/an ________ option can be exercised anytime between the date of writing up to and including the exercise date.

• A) American; European
• B) American; British
• C) Asian; American
• D) European; American

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Definitions:

Par Value

The nominal or face value of a stock or bond. The par value of a bond generally represents the amount of money that the firm borrows and promises to repay at some future date. The par value of a bond is often $1,000 but can be $5,000 or more.

Fiscal Policy

The use of government purchases, transfer payments, taxes, and borrowing to influence economy-wide variables such as inflation, employment, and economic growth.

Monetary Policy

Regulation of the money supply to influence economy-wide variables such as inflation, employment, and economic growth.

Taxing

Is the act of imposing charges on individuals or corporations by government entities to raise revenue for public expenditures.