Vidyalelo
Commerce · Q625

Financial Management

Graduate and Post Graduate · Commerce · question 625

Q625

At last day when European and American option can be exercised is classified as

A.
European date
B.
American date
C.
expiration date
Answer
D.
money date

Answer: Option C

Solution

Answer: Option C
Solution:
At last day when European and American option can be exercised is classified as expiration date. An expiration date in derivatives is the last day that a derivative, such as options or futures, is valid. On or before this day, investors will have already decided what to do with their expiring position.