Chapter 02 · Section 2.1
Exchange traded options
The premium(or price of the option) is the compensation paid by the option buyer to the option seller (or option writer).
The exercise price is the price at which the underlying asset will change hands if the option holder decides to exercise the option.
Which of the following contract terms of exchange-traded options is not standardized or fixed?
c) Expiration
No. Each exchange assigns the expiration cycle and dates for the options traded on its floor. For example, Canadian dollar spot options expire on the Saturday prior to the 3rd Wednesday of March, June, September and December.
d) Premium
a) Contract size
b) Exercise price
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