Which of the following is a path-independent option
A)a fixed strike Asian call option
B)a standard European call option
C)an up-and-out call option
D)an American put option

Question

Quizplus · Accepted Answer

A standard European call option is path-independent, which means the path taken by the underlying asset to reach the exercise price does not affect its payoff. The other options listed are path-dependent, meaning their value is affected by the path taken by the underlying asset over time.

Which of the Following Is a Path-Independent Option