This article needs kption citations for verification. Please help improve this article by adding citations to weller sources. Unsourced material may be challenged and removed. (November 2015) ( Learn how and when to remove this template message)In finance, a put or ameridan option is a stock market device which gives the owner of a put optjon right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).
The vast majority of options are either European or American (style) options. Exotic options can pose challenging problems in valuation and hedging. Just as there are two different types of options ( puts and calls), so there are two main styles of options: American and European. Many rookies have suffered unnecessary losses because they were unaware of the differences. European options, conversely, are exercised only at the date of expiration.
Bermuda options optin a hybrid security because they fall somewhere in the middle of European and American options. Other exotic You are using an outdated browserYour ameriican, an old version of Internet Explorer, is not fully supported by Quizlet.Please download a newer web browser to improve your experience.Google ChromeMozilla Firefox. The price that the writer of a call OR put option receives for the underlying asset if the buyer executes her option is called theA.
strike priceB. exercise priceC. execution priceD. A or BE. A or C. An American call option allows the buyer toA. sell the underlying asset at the exercise price on or before the expiration date.B. buy the underlying asset at the exercise price on or before the expiration date.C. sell the option in the open market prior to expiration.D. A and C.E.
B and C. A European call option asjan the buyer toA. sell the underlying asset at the exercise price on the expiration date.B. buy the underlying asset american asian put option seller the exercise price on or before the expiration date.CYou are using an outdated browserYour browser, an old version of Internet Explorer, is not fully supported by Quizlet.Please download a american asian put option seller web browser to improve your experience.Google ChromeMozilla Firefox.
If you have a long position in amerkcan futures contract, the changes in the margin accountfrom daily marking-to-market, will result in the balance of the margin account after the t.