An American Option Can Best Be Defined As

question 289

Multiple Choice

An American option can best be defined as:

• A) The right to buy an asset at a fixed price during a particular period of time.
• B) The right to sell an asset at a fixed price during a particular period of time.
• C) An option that can be exercised at any time until its expiration date.
• D) An option that can be exercised only on the expiration date.
• E) An option with payoffs in real goods.

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Definitions:

Anal Character

A personality type that Freud theorized is characterized by orderliness, stubbornness, and a focus on control as a result of certain experiences during the anal stage of psychosexual development.

Dependence

A state in which there is a reliance on or need for something or someone for support or to function properly.

Regression

In psychology, regression is a defense mechanism that leads an individual to revert to a previous stage of development or to earlier, less sophisticated behaviors in response to stress or anxiety.

Transference

In psychoanalytic theory, the tendency to bring ways of thinking, feeling, and behavior that developed toward one important person into later relationships with different persons.