Which One of the Following Is Defined as an Option

question 31

Multiple Choice

Which one of the following is defined as an option that can only be exercised at expiration?

• A)European style option
• B)in-the-money option
• C)out-of-the-money option
• D)American style option
• E)derivative option

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Definitions:

NPV Forecast Chart

A visual representation forecasting the Net Present Value of a project or investment over time, depicting the expected profitability.

Percentage Of Risk

The proportion of uncertainty or the chance of occurrence of potential adverse events expressed as a percentage.

Undesirable Outcome

An unfavorable result or effect that occurs from an action, process, or situation.

Probability

A measure of the likelihood that a particular event will occur, often expressed as a number between 0 and 1.