Jeff opted to exercise his August option on August 10 and received $2,500 in exchange for his shares. Jeff must have owned a(an):
A) warrant.
B) American call.
C) American put.
D) European call.
E) European put.

Question

Quizplus · Accepted Answer

Jeff received $2,500 in exchange for his shares, indicating he sold shares, which is consistent with exercising a put option. Since he exercised the option in August, it must be an American put, as European options can only be exercised at expiration.

Jeff Opted to Exercise His August Option on August 10