An option that must be exercised on the pre-determined maturity date is known as a(n)
A) American option.
B) barrier option.
C) European option.
D) Swiss option.

Question

Quizplus · Accepted Answer

European options are the type of options that can only be exercised at expiration, unlike American options which can be exercised at any time before expiration. Barrier and Swiss options are different types of options with specific characteristics not related to the timing of exercise.

An Option That Must Be Exercised on the Pre-Determined Maturity