Which of the following options can be exercised upon expiration at a price equal to the average price of the underlying over its life span?
A)Average options
B)Lookback options
C)Barrier options
D)Basket options

Question

Quizplus · Accepted Answer

Average options allow the holder to exercise at a price equal to the average price of the underlying over its life span. Lookback options allow the holder to choose the highest or lowest price of the underlying over its life span, barrier options have a predetermined price level that, if reached, either activates or deactivates the option, and basket options are based on the performance of a group of assets rather than just one underlying.

Which of the Following Options Can Be Exercised Upon Expiration