26) What is an American-style option?
a) An option that can only be exercised on the expiration date
b) An option that can be exercised at any time before the expiration date
c) An option that can be exercised after the expiration date
d) An option that can only be exercised on certain predetermined dates
27) What is a European-style option?
a) An option that can only be exercised on the expiration date
b) An option that can be exercised at any time before the expiration date
c) An option that can be exercised after the expiration date
d) An option that can only be exercised on certain predetermined dates
28) What is an in-the-money option?
a) An option with a strike price equal to the market price of the underlying asset
b) An option with a strike price higher than the market price of the underlying asset
c) An option with a strike price lower than the market price of the underlying asset
d) An option that has expired
29) What is an out-of-the-money option?
a) An option with a strike price equal to the market price of the underlying asset
b) An option with a strike price higher than the market price of the underlying asset
c) An option with a strike price lower than the market price of the underlying asset
d) An option that has expired
30) What is an at-the-money option?
a) An option with a strike price equal to the market price of the underlying asset
b) An option with a strike price higher than the market price of the underlying asset
c) An option with a strike price lower than the market price of the underlying asset
d) An option that has expired
