If an option can be exercised at any time before its expiration date, it is…

2019

If an option can be exercised at any time before its expiration date, it is called —

Answer: B. American OptionAnswer: An American Option allows the holder to exercise the option at any time before the expiration date, providing greater flexibility compared to a…

  1. A.

    European Option

  2. B.

    American Option

  3. C.

    Dynamic Option

  4. D.

    At the Money Option

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Correct answer: B

Answer: An American Option allows the holder to exercise the option at any time before the expiration date, providing greater flexibility compared to a European Option which can only be exercised on the expiration date. American Option: can be exercised any time before expiry; more flexible.

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