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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