SIE Exam Dumps | When is it permissible to exercise European-style options contracts?

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Question 18/80

When is it permissible to exercise European-style options contracts?

A. Only on the last business day before expiration

B. Only on the day of expiration

C. Only on the day after expiration

D. Only on the third Friday of every month

Correct Answer: B

Step by Step Explanation:
* European-Style Options: Can only be exercised on their expiration date, unlike American-style options, which can be exercised any time before expiration.
* Incorrect Options:
* A: Not accurate; the exercise must occur specifically on the expiration date.
* C: Options cannot be exercised after expiration.
* D: The expiration date depends on the option contract, not a specific weekday.
References:
* Options Clearing Corporation (OCC) Guidelines:OCC European Options.

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