An Option That Can Be Exercised Only at Its Expiration

question 40

Multiple Choice

An option that can be exercised only at its expiration date is called a(n) :

• A)Asian-style option
• B)American-style option
• C)European-style option
• D)Bermuda-style option

---

Definitions:

Stock Price

The cost of purchasing a single share of a particular company, which fluctuates based on demand and supply dynamics in the market.

WACC

Weighted Average Cost of Capital; a calculation of a firm's cost of capital in which each category of capital (debt, equity) is proportionately weighted.

Capital Component

Individual sources of funding that make up a company's capital structure, including debt and equity.

Accounts Payable

Accounts Payable is the account showing the amount a company owes to suppliers or vendors for goods or services purchased on credit.