Which One of the Following Obligates You Only on the Expiration

question 14

Multiple Choice

Which one of the following obligates you only on the expiration date to sell an asset at the strike price if the option is exercised?

• A)American call
• B)American put
• C)European call
• D)European put
• E)European swap

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Definitions:

Critical Thinking

Critical Thinking is the process of actively analyzing, synthesizing, and evaluating information to make reasoned judgments and decisions.

Alternative Arguments

Differing or opposing viewpoints presented in a discussion or debate to consider various perspectives.

Multiple Intelligences

A theory proposing that individuals possess a variety of distinct types of intelligence, each relating to a specific domain of human capability.

Mental Effort

The amount of cognitive resources required to accomplish a task, ranging from low to high depending on the complexity and demands of the task.