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3. Explain the difference between a European option and an American option. 4. Choose your favorite (a) stock, (b) stock index. 5. Go on-line and
3. Explain the difference between a European option and an American option. 4. Choose your favorite (a) stock, (b) stock index. 5. Go on-line and find out if there are any traded call and put options on your favourite assets in 3 (a) and (b) or else find other favourite assets! Are the options on your assets in 3 (a) and (b) respectively of European (E) or American (A) type? 6. Explain what it means for an option to be in-the-money, at-the-money or out-of-the money. 7. Choose four of the traded stock options that have different strike prices.Are your options in-the-money, at-the-money or out-of-the money
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