SIE practice questionhardAssignment/Exercise
A customer who is long an American-style equity call option may exercise:
- AOnly on the expiration date
- BOn any business day until expiration✓ Correct answer
- COnly if the option is in-the-money
- DOnly if assigned by the OCC
Explanation
Why B — On any business day until expiration
American-style options can be exercised on any business day up to expiration. European-style are only exercisable at expiration; the other options confuse these features.
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