Which of the statements is/are true?
1. American option allows the option buyer to exercise his rights at any point before the expiry date.
2. Under European options, the option buyer can exercise his right only on the date specified in the option and not before that.
A. Only Statement 1 is correct
B. Only Statement 2 is correct
C. Both statements are correct
D. Both statements are incorrect
Answer: Option C
Related Questions on International Finance and Treasury
A. The British Pound
B. The Japanese Yen
C. The Spanish Peso
D. The US Dollar
Not a profit maximizing business is
A. International Monetary Fund
B. International bank for Reconstruction and Development
C. International Financial Corporation
D. World Trade Organisation
A. Merchandise Payment
B. Service Payment
C. Factory Income
D. Transfer payment
Nations that have major economic expansion attract
A. Imports
B. Direct Foreign Investment
C. Exports
D. Privatization
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