Which One of the Following Distinguishes an Option as an American

question 13

Multiple Choice

Which one of the following distinguishes an option as an American style option?

• A)option that grants its holder the right to purchase at the strike price
• B)option that grants its holder the right to sell at the strike price
• C)option that obligates its holder to sell at the strike price
• D)option that can be exercised at any time prior to expiration
• E)option that can only be exercised at expiration

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Definitions:

Ethical Approach

A perspective or method guided by moral principles, focusing on right and wrong conduct, fairness, and respect for others.

Public Knowledge

Information or facts that are accessible and available to the general public, not restricted or confidential.

Self-Check

A personal evaluation process where an individual assesses their own performance, qualities, or achievements, often for improvement purposes.

Unreasonable Customer

A customer whose expectations or demands are not in line with what is considered fair or feasible by normal standards.