A shout option
A)Is like a barrier option but in which the option holder gets to choose a barrier at any point.
B)Is effectively an American option which can be exercised at any time before maturity.
C)Is an option where you can lock-in "early-exercise" profits at any one point and receive,at maturity,the maximum of these locked-in profits or the moneyness of the option at maturity.
D)Is a Bermudan option with only one specified early-exercise date,that is,it can be exercised early on that given date or at maturity.

Question

Quizplus · Accepted Answer

A shout option allows the holder to lock in profits at one point before maturity, offering the greater of these profits or the option's value at maturity.

A Shout Option