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.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Options questions
- A stock is quoted at $25.10 bid and $25.30 ask. A customer who places a market order to buy will most likely pay:
- Which factor does NOT directly affect the premium of an equity option?
- Which statement is TRUE regarding a put option?
- An investor establishes a bear put spread by:
- An investor purchases a call option with a $50 strike price. If the underlying stock rises to $55, what happens to the…
- Which Greek measures the rate of change in an option’s price for a $1 move in the underlying stock?
- Which options strategy is best suited for generating income in a flat, non-volatile market?
- When an option writer is assigned, they must: