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Assume All Stocks Are Non-Dividend Paying

Question 73

Multiple Choice

Assume all stocks are non-dividend paying. Given this assumption, which one of these statements is correct regarding stock options?


A) European put options are more valuable than comparable American put options.
B) Exercising a well-into-the-money American put option is generally not a good idea.
C) It is never optimal to exercise an American call option early.
D) You should wait to exercise a put option if the stock price falls to zero.
E) You are better off exercising an in-the-money call option than selling it.

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