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Which of the following best defines an exercising the option? Multiple Choice A bond that can be exchanged for a fixed number of shares of

Which of the following best defines an exercising the option?

Multiple Choice

  • A bond that can be exchanged for a fixed number of shares of stock for a specified amount of time.
  • An option granted to an employee by a company giving the employee the right to buy shares of stock in the company at a fixed price for a fixed time.
  • The act of buying or selling the underlying asset via the option contract.
  • An option that can be exercised only on the expiration date.
  • The last day on which an option can be exercised.

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