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Which of the following is NOT true? (Assume that present values are calculated from the end of the life of the option to today.) Answer:

Which of the following is NOT true? (Assume that present values are calculated from the end of the life of the option to today.)

Answer: _______

A. An American call option is always worth less than the stock price

B. A European call option is always worth less than the stock price

C. An American put option is always worth less than the present value of the strike price

D. A European put option is always worth less than the present value of the strike price

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