An option that can be exercised on or before its maturity is known as a(n)
A) American option.
B) barrier option.
C) European option.
D) Swiss option.

Question

Quizplus · Accepted Answer

American options allow the holder to exercise the option at any time up to and including the expiration date, which differentiates them from European options that can only be exercised at maturity. Barrier and Swiss options are specific types of options with different characteristics, not defined by their exercise terms.

An Option That Can Be Exercised on or Before Its