D is corrent. This meets the definition of an American put option. An American call option provides the holder the right to acquire an underlying at an exercise or strike price, anytime during the option term. The forward contract is an agreement between two parties to buy and sell a specific quantity of a commodity, foreign currency, or financial instrument at an agreed-upon price, with delivery and/or settlement at a designated future date. A swaption is an option on a swap that provides the holder with the right to enter into a swap at a specified future date at specified terms or to extend or terminate the life of an existing swap. A is incorrect. An American call option provides the holder the right to acquire an underlying at an exercise or strike price, anytime during the option term. The forward contract is an agreement between two parties to buy and sell a specific quantity of a commodity, foreign currency, or financial instrument at an agreed-upon price, with delivery and/or settlement at a designated future date. A swaption is an option on a swap that provides the holder with the right to enter into a swap at a specified future date at specified terms or to extend or terminate the life of an existing swap. A is incorrect. An American call option provides the holder the right to acquire an underlying at an exercise or strike price, anytime during the option term. The forward contract is an agreement between two parties to buy and sell a specific quantity of a commodity, foreign currency, or financial instrument at an agreed-upon price, with delivery and/or settlement at a designated future date. A swaption is an option on a swap that provides the holder with the right to enter into a swap at a specified future date at specified terms or to extend or terminate the life of an existing swap. A is incorrect. An American call option provides the holder the right to acquire an underlying at an exercise or strike price, anytime during the option term. The forward contract is an agreement between two parties to buy and sell a specific quantity of a commodity, foreign currency, or financial instrument at an agreed-upon price, with delivery and/or settlement at a designated future date. A swaption is an option on a swap that provides the holder with the right to enter into a swap at a specified future date at specified terms or to extend or terminate the life of an existing swap.
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