A European Call Option Can Be Exercised

question 8

Multiple Choice

A European call option can be exercised:

• A) only on the expiration date.
• B) at any time up to the expiration date.
• C) if the price of the underlying asset falls below the exercise price.
• D) immediately after the payment of dividends.

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Definitions:

Exchange

A marketplace or platform where securities, currencies, commodities, or other financial instruments are traded between two parties.

Performance

The execution, accomplishment, or fulfillment of a task, work, or function as specified or expected.

Erect

To construct, build up, or establish something in an upright position.

Fence

A structure serving as an enclosure, barrier, or boundary, typically made out of wire, wood, or other materials.