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1.All else equal, which is worth more? A American option B European option 2. Increasing the discount rate will make an option worth which today?

1.All else equal, which is worth more?

A American option

B European option

2. Increasing the discount rate will make an option worth which today?

A less

B more

3.An option pricing method should roughly follow which distribution?

A. log normal

B. exponential

C. Normal

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