QUESTION $5$

The American option $($calls or puts$)$ prices are at least as much as the similar European options. This is because European options offer more flexibility than the

American Options.

True

False

The expression for the present value $($PV$)$ of the Strike price $K$ may be written as$,K{e}^{rT},$ where $r$ is the continuously compounded rate, and $T$ is the expiry date.

True

False