An Option That May Be Exercised at Any Time Up

question 434

Multiple Choice

An option that may be exercised at any time up to its expiration date is called a(n) :

• A) Futures option.
• B) Asian option.
• C) Bermudan option.
• D) European option.
• E) American option.

---

Definitions:

Good Faith

A principle of honesty and sincerity of intention in one's actions, especially in contractual or negotiation contexts.

Implied Warranty of Merchantability

A legal presumption that a product will meet the reasonable expectations of quality and performance for goods of its kind.

Bicycle Merchant

A retailer specialized in the sale and service of bicycles and related accessories.

Nonconforming Goods

Products delivered under a sale contract that do not meet the specifications, quality, or quantity as stipulated by the agreement.