Which of the following statements is true of American options?
A) The lower the underlying share price, the higher the value of a call option.
B) The lower the exercise price, the lower the value of a call option.
C) The longer the time to expiration, the lower the value of a call option.
D) The greater the interest rate, the lower the value of a call option.
E) The lower the risk of the underlying security, the lower the value of a call option.
Correct Answer:
Verified
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