Question
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
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American and European calls equally
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European call
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European put
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American put
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American call
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The Little Book Of Market Wizards Lessons From The Greatest Traders
Authors: Jack D. Schwager
1st Edition
1118858697, 978-1118858691
