An option contract that can only be exercised on the expiration date is a(n) ________ option.
A) call
B) put
C) American
D) European
E) index

Name: An option contract that can only be exercised on the expiration date is a(n) ________ option. A) call B) put C) American D) European E) index
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Question

Quizplus · Accepted Answer

A European option can only be exercised on the expiration date, whereas an American option can be exercised at any time prior to expiration. Therefore, the correct answer is D.

An Option Contract That Can Only Be Exercised on the Expiration