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    Question

    An Option that can be exercised on any date before and

    including the expiry date is called 
    A American Option Correct Answer Incorrect Answer
    B European Option Correct Answer Incorrect Answer
    C Asian Option Correct Answer Incorrect Answer
    D Arabian Option Correct Answer Incorrect Answer
    E Indian Option Correct Answer Incorrect Answer

    Solution

    A European option may be exercised only at the expiration date of the option, i.e. at a single pre-defined point in time. An American option on the other hand may be exercised at any time before the expiration date.

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