Which of the following is included in an option contract?
A) The delivery or settlement procedure.
B) The exercise price.
C) Whether the exercise is American or European.
D) The option contract size.
E) All of the above.

Question

Quizplus · Accepted Answer

All of the options listed are typically included in an option contract. The delivery or settlement procedure specifies how the option will be settled upon exercise, the exercise price determines the price at which the option holder can buy or sell the underlying asset, the exercise style indicates whether the option can be exercised at any time before expiration (American) or only at expiration (European), and the option contract size specifies the quantity of the underlying asset that the option contract covers.

Which of the Following Is Included in an Option Contract