SIE practice questionmediumOptions expiration
What is true at options expiration for American-style contracts?
- AThey may be exercised any time before or at expiration✓ Correct answer
- BThey may only be exercised on the expiration date
- CAssignment occurs only after expiration
- DExercised contracts are always settled for cash
Explanation
Why A — They may be exercised any time before or at expiration
American-style options can be exercised at any time before or on expiration. B describes European-style, C is inaccurate, D describes cash-settled index options.
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