Expiration dates in the option market:
A)were expanded by the introduction of LEAPS.
B)are variable depending on the company.
C)are limited to a maximum of 9 months.
D)occur every month on a 12-month calendar basis for each equity option tradeD.

Question

Quizplus · Accepted Answer

In an attempt to satisfy demand for longer-term options, long-term equity anticipation securities (LEAPS) were added and provide options with up to two years to expiration. LEAPS have generally been limited to blue-chip stocks such as Coca-Cola, Dow Chemical, General Electric, IBM, and others. LEAPS have the same characteristics as the short-term options, but because of their long-term nature, they have higher prices.

Expiration Dates in the Option Market