Asked by Morgan Brunk on May 29, 2024
Verified
______ option can only be exercised on the expiration date.
A) A Mexican
B) An Asian
C) An American
D) A European
European
Pertains to financial options or derivatives that can only be exercised at expiration, not before.
Expiration Date
The date on which an options or futures contract is no longer valid and the right to exercise it ceases.
- Absorb the specifics and characteristics of assorted options, particularly American, European, Asian, and Quanto options.
- Know the expiration and exercise mechanisms for American-style, European-style, and exotic options.
Verified Answer
ZK
Zybrea KnightJun 01, 2024
Final Answer :
D
Explanation :
A European option can only be exercised on the expiration date, while the other options can be exercised prior to the expiration date.
Learning Objectives
- Absorb the specifics and characteristics of assorted options, particularly American, European, Asian, and Quanto options.
- Know the expiration and exercise mechanisms for American-style, European-style, and exotic options.
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