Vidyalelo
Commerce · Q634

Financial Management

Graduate and Post Graduate · Commerce · question 634

Q634

Type of option which cannot be exercised before an expiry date which is classified as

A.
European option
Answer
B.
American option
C.
Australian option
D.
money option

Answer: Option A

Solution

Answer: Option A
Solution:
Type of option which cannot be exercised before an expiry date which is classified as European option. A European option is a type of put or call option that can be exercised only on its expiration date.