Question: Let's consider two American call options on Barcelons stock with the same strike price, but different maturities: one expires in six months and the other
Let's consider two American call options on Barcelons stock with the same strike price, but different maturities: one expires in six months and the other one expires in nine months. The Barcelona stock pays dividends in two montis and every quarter thereafter Select the most accurate statements among the following. A. The six-month option must be worth less than the nine-month option, if the dividend payments remain constant
B. The six-month option must be worth less than the nine-month option.
C. The six-month option may be worth more than the nine-month option.
D. The six-month option must be worth more than the nine-month option.
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