Question: The following options have the same underlying stock that does not pay any dividends. The stock is currently trading at $20 per share. Rank the

The following options have the same underlying stock that does not pay any dividends. The stock is currently trading at $20 per share. Rank the following options by price, starting with the highest price:

I. $20-strike European call option with 1 month to maturity

II. $20-strike American call option with 3 months to maturity

III. $20-strike European call option with 3 months to maturity

IV. $5-strike American call option with 3 months to maturity

IV, II, III, I

IV, III, II, I

I, II, III, IV

I, IV, II, III

None of the answer choices.

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