ACI
3I0-013 · Question #65
Which of these statements is correct?
The correct answer is B. A Bermudan option can be exercised only on a few specific dates prior to expiration. See the full explanation below for the reasoning.
Question
Which of these statements is correct?
Options
- AThe strike price of a Bermudan option is an average.
- BA Bermudan option can be exercised only on a few specific dates prior to expiration.
- CA Bermudan option can be exercised at any time before its maturity date.
- DA Bermudan option can be exercised only at maturity.
How the community answered
(59 responses)- A3% (2)
- B78% (46)
- C5% (3)
- D14% (8)
Community Discussion
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