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Consider an American and a European Call Option on a Dividend-Paying

Question 39

Multiple Choice

Consider an American and a European call option on a dividend-paying share, with otherwise identical features (same strike price, etc.) . Which one of the following statements is true?


A) The American call option will never be worth less than the European call option.
B) The European call option will never be worth less than the American call option.
C) Both options should always have the same value.
D) None of the above statements is true.

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