An Option That Can Be Exercised at Any Time Up

question 85

Multiple Choice

An option that can be exercised at any time up to maturity is called a(n) ________.

• A) swap
• B) stock option
• C) European option
• D) American option

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Definitions:

Desire

An intense desire to possess something or a deep hope for something to occur.

Reality

The state of things as they actually exist, as opposed to an idealistic or notional idea of them.

Favored Team

The team or group that is generally expected or predicted to win a competition or achieve success due to its superior position or abilities.

Potential Penalties

Possible sanctions or punishments that could be imposed as a consequence of breaking a law or rule.