An American Option

question 59

Multiple Choice

An American option:

• A)is the right, but not obligation, to buy the underlying asset
• B)is the right, but not obligation, to sell the underlying asset
• C)is the right, but not obligation, to exercise the option on or before a fixed date
• D)is the right, but not obligation, to exercise the option on the expiry date only
• E)is a type of option that is traded in the US only.

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Definitions:

Subcutaneous

Situated or applied under the skin.

Dermis

The thick layer of living tissue below the epidermis that forms the true skin, containing blood capillaries, nerve endings, sweat glands, and hair follicles.

Epidermis

The outer protective layer of the skin that produces new skin cells.

Presbyopia

A condition associated with aging in which the eye's lens loses its ability to focus, making it hard to see objects up close.