Task: Instance Description Understanding (ontology: Business_Finance/Financial_Industry_Business_Ontology)

Which of the following definitions best describes the instance 'elect at exercise method'?

A. commitment with respect to synthetic options on foreign exchange forwards that are based on non-convertible or thinly traded currencies
B. commitment to settle an obligation through the receipt or delivery of the actual underlying instrument(s) or other asset, such as a commodity, instead of through cash settlement
C. commitment to deliver an amount of money at the earliest available date as per settlement convention
D. commitment to determine the delivery strategy at the time of exercise

Answer: commitment to determine the delivery strategy at the time of exercise