American Options Allow Their Holders to Exercise the Option ________

question 34

Multiple Choice

American options allow their holders to exercise the option ________.European options allow their holders to exercise the option ________.

• A) only on the expiration date; on any date up to and including a final date
• B) on any date up to but not including expiration date; on any date up to and including a final date
• C) on any date up to and including a final date; only on the expiration date
• D) on any date before the expiration date; on any date including the expiration date

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Definitions:

Consolidated Cash

The total cash and cash equivalents held by a parent company and its subsidiaries, presented as a single figure on consolidated financial statements.

Common Stock

A type of equity ownership in a corporation, representing a claim on a portion of the company’s profits and the right to vote on matters affecting the company.

Acquisition

The process of obtaining control of another company by purchase or exchange of stock.

Fair Values

The estimated market value of an asset or liability, based on current prices in an open and competitive market.