Which is NOT a type of option discussed?

The correct response highlights that "African options" are not commonly recognized as a standard type of option in financial literature.

Options are financial instruments that provide the right, but not the obligation, to buy or sell an underlying asset at a predetermined price before a specified expiration date. Among the well-known types of options are American and European options, which differ primarily in terms of when they can be exercised. American options can be exercised at any time up to expiration, while European options can only be exercised on the expiration date itself.

Additionally, binary options, another recognized type of option, provide a fixed payout based on a yes/no proposition regarding the underlying asset's performance. They are characterized by their all-or-nothing payoff structure, making them distinct from the standard American and European options.

In the context of typical financial discussions and education, "African options" do not appear as a recognized category, thus justifying its identification as not a type of option discussed.