Which of the following best defines an American options?
A) An option that can be exercised at any time until its expiration date.
B) The right to buy an asset at a fixed price during a particular period of time.
C) The dollar amount of a bond's par value that is exchangeable for one share of stock.
D) The number of shares per bond received for conversion into stock.
E) The value of a convertible bond if it was immediately converted into common stock.

Question

Quizplus · Accepted Answer

An American option allows the holder to exercise the option at any time before and including its expiration date.

Which of the Following Best Defines an American Options