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Consider Options That Are Otherwise Identical

Question 14

Multiple Choice

Consider options that are otherwise identical.Then,the following statement is INCORRECT:


A) the longer the time until expiration,the greater the price of a European put
B) the lower the strike price,the more valuable the European call
C) the higher the strike price,the more valuable the European put
D) the longer the time until expiration,the greater the price of an American call
E) the longer the time until expiration,the greater the price of a European call

Correct Answer:

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