An American Option

question 1

Multiple Choice

An American option

• A)can be exercised only at expiration.
• B)can be exercised any time prior to expiration.
• C)sells only on the U.S. exchanges.
• D)Both A and B are true.

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Definitions:

Express Authority

Legal power explicitly granted to an individual or organization to perform certain actions or make decisions.

Apparent Authority

Refers to a situation where a third party reasonably believes an agent has the authority to act on behalf of a principal, even if the agent does not have such authority.

Implied Authority

The power or right assumed to be held by a person in a position of leadership or responsibility, based on the role rather than explicitly stated.

Maverick Buyers

Individuals within an organization who make unauthorized purchases outside of agreed contracts or procurement policies, often leading to inefficiencies and increased costs.