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What are the minimum values of an Americ...

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题目

What are the minimum values of an American-style and a European-style 3-month call option with a strike price of $80 on a non-dividend-paying stock trading at $86 if the risk-free rate is 3%? American European

选项

A.$6.00 $6.00

B.$6.00 $5.96

C.$6.59 $6.00

D.$6.59 $6.59

答案

D

解析

The minimum value for a European-style call option, c_T is given by:「huixue_img/importSubject/1564169527976136704.png」An American style call option must be worth at least as much as an otherwise identical European-style call option and has the same minimum value.