Examlex
Which of the following is mismatched?
American Options
Options that can be exercised at any time before expiration, as opposed to European options which can only be exercised on the expiration date.
European Options
Financial derivatives that give the holder the right to buy or sell an underlying asset at a specified price, but only on the option's expiration date.
Payoff
The return received from an investment or the outcome of a decision or transaction.
Underlying Asset
The financial instrument (such as stocks, bonds, commodities) upon which derivatives or other financial instruments (e.g., options) are based.
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