Finra Exam Series-7 Topic 4 Question 18 Discussion

Actual exam question for Finra's Series-7 exam

Question #: 18
Topic #: 4

[All Series-7 Questions]

An option that permits the holder to exercise the contract only at expiration is referred to as:

AEuropean style

BAmerican style

CNordic style

DAsian style

Show Suggested Answer

Suggested Answer: A

European style. These options can only be exercised at the expiration date while American style options can be exercised at any time prior to expiration.

by Ettie at May 06, 2022, 01:20 AM

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