An Option That Can Be Exercised Only at Its Expiration

question 13

Multiple Choice

An option that can be exercised only at its expiration date is called a:

• A) forward contract
• B) lookback option
• C) American-Style option
• D) European-Style option
• E) Bermuda-Style option

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Definitions:

Civil Servants

Employees of the government who are hired to implement the laws and policies decided by elected officials, not including military personnel.

Supreme Court

The highest judiciary authority in the United States, responsible for interpreting federal laws and the Constitution.

Immigration and Naturalization Service v. Chadha

A 1983 U.S. Supreme Court case that declared the legislative veto inconsistent with the Constitution, marking a significant decision on the separation of powers.

State

A political entity characterized by a defined territory, permanent population, a government, and the capacity to enter into relations with other sovereign states.