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9
Which of the following describes European options?
A.Sold in Europe
B.Priced in Euros
C.Exercisable only at maturity
D.Calls (there are no European puts)
A.Sold in Europe
B.Priced in Euros
C.Exercisable only at maturity
D.Calls (there are no European puts)
Answer: C
European options can be exercised only at maturity. This is in contrast to American options which can be exercised at any time. The term “European” has nothing to do with geographical location, currencies, or whether the option is a call or a put.
European options can be exercised only at maturity. This is in contrast to American options which can be exercised at any time. The term “European” has nothing to do with geographical location, currencies, or whether the option is a call or a put.
Flashcard info:
Author: CoboCards-User
Main topic: Finance & Investment
Topic: Derivatives
Published: 27.10.2015