An option contract that can be exercised up to and including the expiration date is called a(n) _______ option.
A) European
B) Put
C) Call
D) American
E) Bermudan

Question

Quizplus · Accepted Answer

An option that can be exercised up to and including the expiration date is called an American option. European options can only be exercised on the expiration date, while Bermudan options can be exercised on specific dates before and including the expiration date. Put and call options refer to whether the holder has the right to sell or buy an underlying asset at a predetermined price, but do not specify the exercise flexibility.

An Option Contract That Can Be Exercised Up to and Including