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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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