Type of option that can be exercised only at date of expiration is classified as

A. European option

B. Canadian option

C. Australian option

D. American option

Answer: Option A

Solution(By Examveda Team)

Type of option that can be exercised only at date of expiration is classified as European option. A European option is a version of an options contract that limits execution to its expiration date. In other words, if the underlying security such as a stock has moved in price an investor would not be able to exercise the option early and take delivery of or sell the shares.