Examlex
Which of the following best illustrates the problem imposed by capital rationing?
European Option
Option that can be exercised only on the expiration date.
Expiration Date
The last day on which an option can be exercised.
Underlying Asset
The financial instrument (e.g., stock, bond, commodity) upon which a derivative's price is based.
American Put Option
A financial derivative that gives the holder the right to sell an asset at a specified price within a specified time.
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