Which of the following statements regarding American puts is/are true?
A) An American put can be exercised any time before expiration
B) An American put is always more valuable than an equivalent European put
C) Multi-period binomial model can be used to value an American put
D) All of the above

Question

Quizplus · Accepted Answer

An American put can be exercised any time before expiration, and it is always more valuable than an equivalent European put. Multi-period binomial model can be used to value an American put.

Which of the Following Statements Regarding American Puts Is/are True