- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 2. Forward Commitment and Contingent Claim Features and Instruments
- Subject 2. Contingent Claims: Options
CFA Practice Question
A call option contract specifies all of the following except the ______.
B. number of securities that can be bought
C. exercise price of the option
D. market price of the underlying securities
A. time period for which the contract is in force
B. number of securities that can be bought
C. exercise price of the option
D. market price of the underlying securities
Correct Answer: D
An option contract specifies the underlying stock, strike price, strike date, contract size, exercise style, and delivery procedure.
User Contributed Comments 2
| User | Comment |
|---|---|
| anricus | What is meant by the exercise style? Is this the difference between american and european style option (exercise at any date for american versus set date for european style) |
| 0is4eva | yes |