Q669
An option which can be exercised any desired time before an expiry date is classified as
A.
Australian option
B.
money option
C.
European option
D.
American option
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
An option which can be exercised any desired time before an expiry date is classified as American option. An American option is a put option or call option that can be exercised at any time on or before its expiration date.