June 2015

1:

Examine the following statements and choose the correct code:

Assertion (A): American style option, compared to European style, provides more freedom to option holders in exercising the option.

Reason (R): American style option can be exercised only at a specified date which is generally the expiration date.

Codes:

A.

Both (A) and (R) are correct

B.

Both (A) and (R) are wrong

C.

(A) is correct, but (R) is wrong

D.

(A) is not correct, but (R) is correct

 

Answer : C

Explanation :

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Option: A

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