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Suppose an investor originally paid a premium C for an American call option with exercise price E. It is now the expiry date T, the
Suppose an investor originally paid a premium C for an American call option with exercise price E. It is now the expiry date T, the value of the underlying asset is ST, and the investor still owns the option. Which of the following are true?
The option has value ST E if it is in the money.
The option is worthless if ST < E.
The profit to the investor would have been the same with a European option on the same asset with the same exercise price bought at the same time.
The option could not have previously been exercised
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