Which of the Following Statements Is True of American Options

Multiple Choice

Which of the following statements is true of American options?

A) The lower bound on the price of a call option on stock is the price of the stock.
B) The lower bound on the price of a call option on stock could be zero.
C) To prevent arbitrage, the value of the call today must be less than the stock price minus the exercise price.
D) After expiration, an option on stock will be worth more than the option's intrinsic value.
E) The upper bound on the price of a call option is its intrinsic value.