Multiple Choice
For a call option on a stock that pays dividends,which of the following statements is valid?
A) The European call is worth the same as the American call.
B) The European call always decreases in value as dividends increase,but the American call always increases in value as dividends increase.
C) The American call is worth at least as much as the European call.
D) The American call is less likely to be exercised as dividends increase.
Correct Answer:

Verified
Correct Answer:
Verified
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