Q830
The following two statements relate to financial derivatives. Choose the correct answer for statements being correct or incorrect. Statement I When an option is allowed to be exercised only on the maturity date, it is called an American option. Statement II If the option holder does not lose or gain whether he exercise his option or buys or sells the asset form the market, the option is said to be at-the-money.
A.
Statement I is correct, but Statement II is incorrect
B.
Statement II is correct, but Statement I is incorrect
AnswerC.
Both statements I and II are correct
D.
Both statements I and II are incorrect
Answer: Option B
Solution
Answer: Option B
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