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 —
- A.
European Option
- B.
American Option
- C.
Dynamic Option
- 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.