[amp_mcq option1=”European option” option2=”American option” option3=”expiry option” option4=”covered options” correct=”option3″]<\/p>\n
The correct answer is: C. expiry option<\/p>\n
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell an underlying asset at a specified price on or before a specified date. The seller of the option, called the option writer, is obligated to fulfill the terms of the contract if the buyer exercises the option.<\/p>\n
There are two main types of options: European options and American options. A European option can only be exercised on the expiration date, while an American option can be exercised at any time up to and including the expiration date.<\/p>\n
A covered option is an option that is purchased or sold by an investor who already owns the underlying asset. This type of option is less risky than an uncovered option, which is an option that is purchased or sold by an investor who does not own the underlying asset.<\/p>\n
An expiry option is not a type of option market. It is a term used to describe the date on which an option expires.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”European option” option2=”American option” option3=”expiry option” option4=”covered options” correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-59511","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n