An Option Contract That Can Only Be Exercised on the Expiration

question 9

Multiple Choice

An option contract that can only be exercised on the expiration date is called a(n) ________ option.

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

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Definitions:

Straight-Line Method

A method of calculating depreciation by evenly spreading the cost of an asset over its useful life.

Adjusting Entry

A journal entry made at the end of an accounting period to allocate income and expenditures to the period in which they actually occurred.

Straight-Line Method

A method of calculating depreciation or amortization by evenly allocating the cost of an asset over its useful life.