American option contracts:
A) are exercised at the discretion of the contract seller.
B) obligate the buyer but not the seller.
C) can be exercised on any day up to and including the expiration date.
D) are marked to market on a daily basis.
E) are only available on publicly traded stocks.

Question

Quizplus · Accepted Answer

American option contracts can be exercised on any day up to and including the expiration date, unlike European option contracts which can only be exercised on the expiration date. The other options listed are incorrect.

American Option Contracts