Explanation:
The correct answer is D.
Option A is correct because non-standard American options have the Bermudan feature, which allows them to be exercised at any time until expiration.
Option B is correct because these options may be allowed to be exercised early.
Option C is also correct because the strike price of non-standard American options may change during the life of the option.
Q.788 Some of the exotic options that are created by brokers and traders are created with non-standard American-style options that can be exercised at any time until expiration. These options trade in over-the-counter markets. Which of the following features is likely present in non-standard American options?
A
These options can have the features of both American and European options, which allows them to be exercised at any time until their expiration.
B
These options may be allowed to exercise early.
C
The strike price of non-standard American options may change during the life of the option.
D
All of the above
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