An ________ Option Can Be Exercised Only on Its Expiration

question 57

Multiple Choice

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

---

Definitions:

Market Price

The current price at which a good or service can be bought or sold, determined by the intersection of demand and supply forces in the market.

Quantity Demanded

The total amount of goods or services that consumers are willing and able to purchase at a given price in a specific time period.

Quantity Supplied

The quantity of a product or service that suppliers are ready and capable of selling at a particular price during a certain timeframe.

Demand Curve

A visual depiction that illustrates the connection between a product's price and the amount consumers are willing to buy at different prices.