Ask Question
BusinessBusiness
23 January, 11:41

Which of the following is NOT true? (Present values are calculated from the end of the life of the option to the beginning.) A. An American put option is always worth less than the present value of the strike price B. A European put option is always worth less than the present value of the strike price C. A European call option is always worth less than the stock price D. An American call option is always worth less than the stock price

+3
Answers (1)
  1. 23 January, 14:21
    0
    A. An American put option is always worth less than the present value of the strike price

    Explanation:

    Put option refers to a stock market instrument which gives the holder an option to sell an asset at an agreed price on or before a particular date.

    Each contract covers around 100 shares for stock options.

    An American call option provides the holder with the right to purchase an asset, while a put option provides the holder an option to sell it.

    A European option can be implemented only at the expiration date of the option and an American option can be implemented at any time before the expiration date.

    An American put option is always worth less than the present value of the strike price.

    So, option A. is correct
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Which of the following is NOT true? (Present values are calculated from the end of the life of the option to the beginning.) A. An American ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Do the Math 3-3 Ratio Analyses Use the following balance sheet and cash flow statement information to answer the questions below.
Answers (1)
Assume a firm increases its revenue by $100 while increasing its cost of goods sold by $85. How much additional tax will the firm owe if its marginal tax rate is 21%?
Answers (1)
When a union bargains successfully with employers, in that industry, a. the quantity of labor demanded increases and the quantity of labor supplied decreases. b. both the quantity of labor supplied and the quantity of labor demanded decrease. c.
Answers (1)
Successfully starting and running a business requires drive. True ot False
Answers (1)
Mustard's Inc. sold the rights to use one of its patented processes that will result in cash receipts of $3,600 at the end of each of the next three years and a lump sum receipt of $5,100 at the end of the fourth year.
Answers (1)
New Questions in Business
Most of the time it is quite difficult to separate the three functions of money. Money performs its three functions at all times, but sometimes we can stress one in particular.
Answers (1)
The APB partnership agreement specifies that partnership net income be allocated as follows: Partner A Partner P Partner B Salary allowance 30000 10000 40000 Interest on average capital balance 10% 10% 10% Remainder 40% 40% 20% Average capital
Answers (1)
The supply curve of reserves in an economy is horizontal when: A) the federal funds rate is greater than the seasonal credit discount rate. B) the federal funds rate is less than the secondary credit discount rate.
Answers (1)
Colton took out a 3 year loan for $2075 at a computer store to be paid back with monthly payments at a 10.7% APR. If the loan offers no payments for the first 11 months, how many payments will Colton be required to make?
Answers (1)
An externality is a. a benefit realized by the purchaser of a good or service. b. a cost paid for by the producer of a good or service. c. a benefit or cost experienced by someone who is not a producer or consumer of a good or service. d.
Answers (1)
Home » Business » Which of the following is NOT true? (Present values are calculated from the end of the life of the option to the beginning.) A. An American put option is always worth less than the present value of the strike price B.
Sign Up Forgot Password?