SIE Exam Question 592: Answer and Explanation

Question: 592

The standard expiration period for a put or call option is __________. Long-term equity anticipation securities (LEAPS) have an expiration period __________.

• A. 6 months, longer than 1 year
• B. 6 months, between 6 months and 1 year
• C. 9 months, between 9 months and 1 year
• D. 9 months, longer than 1 year

Correct Answer: D

Explanation:

The standard expiration period for a put or call option is 9 months. Long-term equity anticipation securities (LEAPS) have an expiration period longer than 1 year.