You owned an option that expires on February 21. You exercised the option on February 3. The option must have been a(n):
A) call option.
B) put option.
C) European option.
D) American option.
E) Insufficient information.

Question

Quizplus · Accepted Answer

American options allow the holder to exercise the option at any time before the expiration date, unlike European options which can only be exercised on the expiration date. Since the option was exercised before its expiration date, it must be an American option.

You Owned an Option That Expires on February 21