An option on the S&P Canada 60 would be considered a(n) _________ option.
A) call
B) put
C) American
D) equity
E) stock index

Question

Quizplus · Accepted Answer

The S&P Canada 60 is an index comprised of the 60 largest companies listed on the Toronto Stock Exchange, therefore an option on this index would be a stock index option, making E the correct answer. A call option gives the holder the right to buy the underlying asset, while a put option gives the holder the right to sell the underlying asset. American options can be exercised at any time before expiration, while equity options are based on individual stocks.

An Option on the S&P Canada 60 Would Be Considered