An option that may be exercised only on the expiration date is called a(n)________ option.
A)European
B)American
C)Bermudian
D)futures
E)Asian

Question

Quizplus · Accepted Answer

European options can only be exercised on the expiration date, while American options can be exercised at any time before or on the expiration date. Bermuda options can be exercised on certain specified dates before the expiration date. Futures options are a type of American option where the underlying asset is a futures contract. Asian options have a payoff determined by the average price of the underlying asset over a specific period of time.

An Option That May Be Exercised Only on the Expiration