10. What is the relationship between the value of an American option and the value of a...
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Question:
10. What is the relationship between the value of an American option and the value of a comparable European option? For example, is it always greater or less, or does the relationship depend on some parameter? Explain why the relationship is that way.
A. the European option is never less valuable
B. the American option is never less valuable
C. the American option is never less valuable unless its time premium is larger
D. the American option has more "optionality"
A and B
A and C
A and D
B and C
B and D
C and D
all but A
all but B
all but C
all but D
all are true
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