An option that can be exercised only at a specific set of dates is called a(n):
A)Asian-style option
B)American-style option
C)European-style option
D)Bermuda-style option

Question

Quizplus · Accepted Answer

A Bermuda-style option allows the holder to exercise the option only on specific dates, making it the best choice for the given situation. European-style options can only be exercised at expiration, while American-style options can be exercised at any time before expiration. Asian-style options have a payoff based on the average price of the underlying asset over a certain period, and are not relevant for this question.

An Option That Can Be Exercised Only at a Specific