Q544
Type of option that can be exercised only at date of expiration is classified as
A.
European option
AnswerB.
Canadian option
C.
Australian option
D.
American option
Answer: Option A
Solution
Answer: Option A
Solution:
Type of option that can be exercised only at date of expiration is classified as European option. A European option is a version of an options contract that limits execution to its expiration date. In other words, if the underlying security such as a stock has moved in price an investor would not be able to exercise the option early and take delivery of or sell the shares.