The initial maturities of most exchange-traded options are generally ________.
A) less than 1 year
B) less than 2 years
C) between 1 and 2 years
D) between 1 and 3 years

Question

Quizplus · Accepted Answer

The correct answer is A - less than 1 year. Exchange-traded options usually have maturities of less than one year, ranging from a few days to several months. This allows investors to make short-term hedging or speculative trades. Options with longer maturities are also available, but are less common.

The Initial Maturities of Most Exchange-Traded Options Are Generally ________