An options contract that allows you to exercise the option anytime during a given time period is known as ... a. An American option b. A Caribbean option c. An English option d. A European option
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An options contract that allows you to exercise the option anytime during a given time period is known as ...
An American option
A Caribbean option
An English option
A European option
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- An option that gives the option buyer the right to buy the commodity or financial instrument specified in the contact at the exercise price is called:* A. an American option B. a European option C. a call option D. a put optionwhich one is correct please confirm? Q9: An option that gives the owner the right to buy a financial instrument at the exercise price within a specified period of time is a call option put option American option European optionAn option that gives the option buyer the right to sell the commodity or financial instrument specified in the contact at the exercise price is called: a. an American option. b. a call option. c. a put option. d. a European option.
- Select all that are true with respect to options discussed in this module: Group of answer choices Option “moneyness” is sometimes called the “intrinsic value” of the option. A European Option can be exercised any time up to and including the date of maturity, but American Option can be exercised only at the date of maturity. The option “writer” is essentially the original seller of the option. While the option owner has the right, but not the obligation, to exercise an option, the option writer is obligated to follow through on the other side of the transaction if the option owner chooses to exercise. The option premium (option “value”) is made up of the intrinsic value and “speculative” value or time value.The European call option gives the option buyer the right to exercise the option: Select one: a. at any time up to the expiration date. O b. only on the expiration date. c. if the price of the underlying asset falls below the exercise price. O d. immediately after the payment of dividends.a)analyze and discuss the following factors on a European call option: time to expiration, exercise price, interest rate, volatility, and dividends. b) identify, analyze, and discuss the following characteristics of a European put option: maximum value, intrinsic value, time value, lower bound, and payoff at expiration. c) analyze and discuss the following factors on a European put option: time to expiration, exercise price, interest rate, volatility, and dividends. d) discuss the relationship between American and European option prices. e) derive the put-call parity and discuss its implications. f) discuss the characteristics of a currency option.
- Which of the following statements about European option contracts is true? Question 2Answer a. Typically American options are cheaper than otherwise similar European options due to the uncertainty regarding the date of exercise. b. The price of an option can be obtained by computing the true probabilities of each state of nature, working out the expected option payoff across those states and then discounting back to the present. c. A long call position and a short put position both involve buying the underlying and so are equivalent d. One can synthesise a long forward position in the underlying by being long a call and short a puti)identify, analyze and discuss the following characteristics of an American put option: maximum value, intrinsic value, time value, lower bound, and payoff at expiration. ii) analyze and discuss the following factors on an American put option: time to expiration, exercise price, interest rate, volatility, and dividends. iii) identify, analyze, and discuss the following characteristics of a European call option: maximum value, intrinsic value, time value, lower bound, and payoff at expiration. iv) analyze and discuss the following factors on a European call option: time to expiration, exercise price, interest rate,Which one of the following statements correctly describes your situation as the owner of an American call option? Multiple Choice You are obligated to buy at a set price at any time up to and including the expiration date. You have the right to sell at a set price at any time up to and including the expiration date. You have the right to buy at a set price only on the expiration date. You are obligated to sell at a set price if the option is exercised. You have the right to buy at a set price at any time up to and including the expiration date.
- Which of the following statements about European option contracts is TRUE? a. Typically American options are cheaper than otherwise similar European options due to the uncertainty regarding the date of exercise. b. One can synthesise a long forward position in the underlying by being long a call and short a put c. A long call position and a short put position both involve buying the underlying and so are equivalent d. The price of an option can be obtained by computing the true probabilities of each state of nature, working out the expected option payoff across those states and then discounting back to the present.The value of a European put option can be either directly or inversely to a. Time to expiry b. volatility of the underlyingwhich one is corect please confirm? Q8: An option that gives the owner the right to sell a financial instrument at the exercise price within a specified period of time is a put option call option swap premium
