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:

Skeptical

Characterized by a questioning attitude or doubt towards one or more items of putative knowledge or belief.

Critical Thinking Skills

The capacity to analyze facts, generate and organize ideas, defend opinions, make comparisons, draw inferences, evaluate arguments, and solve problems.

Prospects Of Success

The potential or likelihood of achieving desired results, gains, or accomplishments in the future.

Critical Thinking

The intellectual discipline of actively and skillfully conceptualizing, applying, analyzing, synthesizing, and evaluating information gathered from observation, experience, reflection, reasoning, or communication.