If you can exercise an option anytime prior to and including the expiration date, the option is a(n) _________ option.
A) Call
B) Put
C) American
D) European
E) Index

Question

Quizplus · Accepted Answer

An American option can be exercised anytime prior to and including the expiration date, whereas a European option can only be exercised on the expiration date. Therefore, (C) American is the correct choice. The other options, (A) Call, (B) Put, and (E) Index, do not provide enough information about exercise flexibility.

If You Can Exercise an Option Anytime Prior to and Including