Which one of the following four exercise features is typical for the most exchange-traded equity options?

Which one of the following four exercise features is typical for the most exchange-traded equity options?
A . Asian exercise feature
B . American exercise feature
C . European exercise feature
D . A shout option exercise feature

View Answer

Answer: B

Explanation:

Most exchange-traded equity options in the U.S. typically have the American exercise feature. This feature allows the holder to exercise the option at any time before and including the expiration date, providing greater flexibility compared to the European exercise feature, which only allows exercise at expiration. The Asian and shout option features are less common and not typically associated with exchange-traded equity options.