Which one of the following is defined as an option that can only be exercised at expiration?
A)European style option
B)in-the-money option
C)out-of-the-money option
D)American style option
E)derivative option

Question

Quizplus · Accepted Answer

European style options can only be exercised at expiration, whereas American style options can be exercised at any time before expiration. In-the-money and out-of-the-money options refer to the current price of the underlying asset relative to the strike price of the option, and do not relate to exercise timing. Derivative option is not a commonly used term in finance, and is not a relevant answer choice.

Which One of the Following Is Defined as an Option