CFA Practice Question

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CFA Practice Question

A call option contract specifies all of the following except the ______.

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
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