Black-Scholes assumes that all options are European,meaning that the option can be exercised only on the date of the option's maturity.In reality,real options are often more like ____ options,which can be exercised early.
A) South American
B) Chinese
C) American
D) Russian

Question

Quizplus · Accepted Answer

American options can be exercised at any time prior to the option's maturity date, making them more realistic than European options.

Black-Scholes Assumes That All Options Are European,meaning That the Option