Vidyalelo
Management · Q144

International Finance and Treasury

Graduate and Post Graduate · Management · question 144

Q144

European currency options can be exercised _______; American currency options can be exercised _______.

A.
any time up to the expiration date; any time up to the expiration date
B.
any time up to the expiration date; only on the expiration date
C.
only on the expiration date; only on the expiration date
D.
only on the expiration date; any time up to the expiration date
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
European currency options can be exercised only on the expiration date; American currency options can be exercised any time up to the expiration date.