Vidyalelo
Management · Q621

Financial Management

Graduate and Post Graduate · Management · question 621

Q621

Types of option markets do not include

A.
European option
B.
American option
C.
expiry option
Answer
D.
covered options

Answer: Option C

Solution

Answer: Option C
Solution:
Types of option markets do not include expiry option. The expiration date of an option contract is the last date on which the holder of the option may exercise it according to its terms. In the case of options with "automatic exercise" the net value of the option is credited to the long and debited to the short position holders.