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An analyst at a wealth management company is researching derivative products offered by the Chicago Board Options Exchange (CBOE). The analyst examines the specifications of options offered on individual equities and compares them to options on equity indices. Which of the following is most likely correct regarding option specifications at the CBOE?
A
Options on individual equities are typically American-style, while many options on indices are European-style.
B
Options on both individual equities and indices are physically settled by delivering the underlying asset.
C
The terms of equity option contracts do not change as the price of the underlying asset changes due to stock splits or dividends.
D
CBOE offers index options that mature at the end of each week for the next 12 months.