If an Option Buyer Wanted to Decide Only at the Expiration

question 101

Multiple Choice

If an option buyer wanted to decide only at the expiration date whether or not to exercise the option then and the price locked into that date,they would buy:

• A) An Asian option.
• B) a LEPO option.
• C) a European-type option.
• D) an American-type option.

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Definitions:

Demand Curve

A graph that shows the relationship between the price of a good and the quantity of that good that consumers are willing to purchase.

Currency Value

The worth of a particular currency in terms of another currency or the amount of goods and services that can be exchanged for it.

U.S. Dollar

The official currency of the United States, widely used as a standard of exchange in international markets and a reserve currency globally.

Foreign Exchange

The trade of one currency for another, facilitating international trade and investment.