Multiple Choice
Suppose c and p are the current prices of a European call and put,while cA and pA are those corresponding to American options.If today's price of the stock underlying the options is S,a zero-coupon bond that matures on the common expiration date for the options is B,and the common strike price is K,then the following statement is INCORRECT:
A) c max(S - BK,0)
B) cA max(S - BK,0)
C) c max(BK - S,0)
D) p max(BK - S,0)
E) pA max(K - S,0)
Correct Answer:

Verified
Correct Answer:
Verified
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