LEAPS are typically:
A) more expensive than short-term options.
B) cheaper than short-term options.
C) only available for major indexes, not individual stocks.
D) long-term options, with maturities between 5 and 10 years.

Question

Quizplus · Accepted Answer

LEAPS (Long-term Equity Anticipation Securities) are long-term options with maturities up to three years, not 5 to 10 years. They are typically more expensive than short-term options due to their longer time to expiration, which increases their time value.

LEAPS Are Typically