A(n) _____ option can only be exercised on the maturity date.
A) American
B) call
C) put
D) European
E) Asian

Question

Quizplus · Accepted Answer

European option can only be exercised on the maturity date, whereas American options can be exercised at any time before the maturity date. Call and put options refer to the buyer's right to buy or sell an underlying asset, respectively, and are not relevant to the question. Asian option is a type of option whose payoff is calculated based on the average price of the underlying asset over a certain period of time, and is not relevant to the question.

A(n) _____ Option Can Only Be Exercised on the Maturity