An option that can be exercised at any time up to maturity is called
A)a swap.
B)a stock option.
C)an European option.
D)an American option.

Question

Quizplus · Accepted Answer

An option that can be exercised at any time up to maturity is called an American option. The other options are not applicable in this context - a swap is a contractual arrangement between two parties to exchange financial instruments, a stock option is a contract that gives the holder the right to buy or sell a particular stock at a certain price within a specific period of time, and a European option can only be exercised on its expiration date.

An Option That Can Be Exercised at Any Time Up