An Option That Can Be Exercised Only at Maturity Is

question 27

Multiple Choice

An option that can be exercised only at maturity is referred to as:

• A)a European option
• B)a call option
• C)a protective put
• D)an American option

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Definitions:

Principal

The initial amount of a loan or investment, excluding any interest or dividends.

Agent

An individual or entity authorized to act on behalf of another.

Contract

A legally binding agreement between two or more parties that outlines obligations each party must fulfill.

Liable

Being legally responsible for something, especially in the context of debts or legal wrongs.