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Management · Q858

International Finance and Treasury

Graduate and Post Graduate · Management · question 858

Q858

Which of the statements is/are true? 1. American option allows the option buyer to exercise his rights at any point before the expiry date. 2. Under European options, the option buyer can exercise his right only on the date specified in the option and not before that.

A.
Only Statement 1 is correct
B.
Only Statement 2 is correct
C.
Both statements are correct
Answer
D.
Both statements are incorrect

Answer: Option C

Solution

Answer: Option C
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