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A stock currently sells for $34 a share but is expected to increase in value over the next six months to at least $36 a

A stock currently sells for $34 a share but is expected to increase in value over the next six months to at least $36 a share. Assume there are 6-month options available on this stock with an exercise price of $35. Which of these options should have the most value today?

Multiple Choice

  • American and European calls equally

  • European call

  • European put

  • American put

  • American call

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