The type of option that can be exercised before the date of expiration as well as on expiry date is classified as _____________?
Correct answer: B. American option
- A. Australian option
- B. American option
- C. European option
- D. Canadian option
Explanation
An American option may be exercised at any time up to and including its expiration date. A European option can normally be exercised only on the expiration date.
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