A foreign exchange option contract that allows the holder to buy or sell an amount of a currency on any day up to and including the day the contract expires is called:

Question

Quizplus · Accepted Answer

An American option is a foreign exchange option contract that allows the holder to exercise their right to buy or sell an amount of currency at any point up to and including the day the contract expires. A European option, on the other hand, can only be exercised on the day it expires. Therefore, the correct answer is C - an American option.

A Foreign Exchange Option Contract That Allows the Holder to Buy