Longer-term American-style options with maturities of up to 3 years are called ________.
A) warrants
B) LEAPS
C) GICs
D) CATs

Question

Quizplus · Accepted Answer

Long-term American-style options with maturities of up to 3 years are called LEAPS. LEAPS stands for Long-Term Equity Anticipation Securities, and they allow investors to take longer-term bets on the price movements of underlying assets such as stocks, indexes, or commodities. Compared to regular options, LEAPS have a longer time horizon, which gives investors more time to be right.

Longer-Term American-Style Options with Maturities of Up to 3 Years