An Option That May Be Exercised Only on the Expiration

question 281

Multiple Choice

An option that may be exercised only on the expiration date is called a(n) :

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

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Definitions:

Unexpected

Events or findings that deviate from what is normally anticipated or considered usual, often requiring special attention or strategy.

Guidelines

A set of recommended practices or instructions designed to shape actions or achieve desired outcomes.

Directive

An instruction or order given with authority, often within an organizational or legal context.

Deliverable

A specific output or result that must be delivered upon completion of a project or part of a project.