Expiration Date Can Best Be Defined As

question 126

Multiple Choice

Expiration date can best be defined as:

• A) The act of buying or selling the underlying asset via the option contract.
• B) The fixed price in the option contract at which the holder can buy or sell the underlying asset. Also the exercise price or strike price.
• C) The last day on which an option can be exercised.
• D) The change in the stock price divided by the change in the call price.
• E) A feature included in the terms of a new issue of debt or preferred shares to make the issue more attractive to initial investors.

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Definitions:

Exponential

Pertaining to a mathematical function or growth pattern that increases at a rate proportional to the current value, resulting in rapid growth.

Analytical

Relating to or using analysis or logical reasoning for problem-solving or understanding concepts.

Practical

Concerned with the actual doing or use of something rather than with theory and ideas.

Chronological Age

The actual age of an individual or thing as measured in years from the date of birth.