An Option That Can Be Exercised Only at Maturity Is

question 48

Multiple Choice

An option that can be exercised only at maturity is called a(n) ________.

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

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Definitions:

Thermal Compressors

Devices that use heat energy to compress a gas, often used in heat pump and refrigeration systems.

Spot Rate

The current market price at which a currency can be bought or sold for immediate delivery.

Forward Rate

An agreed-upon price for a financial transaction that will occur at a future date, often used in foreign exchange and interest rate markets.

Annual Rate

The yearly interest rate or rate of return on an investment, loan, or other financial product.