Which of the Following Statements Regarding American Puts Is/are True

question 8

Multiple Choice

Which of the following statements regarding American puts is/are true?

• A) An American put can be exercised any time before expiration
• B) An American put is always more valuable than an equivalent European put
• C) Multi-period binomial model can be used to value an American put
• D) All of the above

---

Definitions:

External Locus

A belief system where individuals attribute their success or failure to external factors or forces beyond their control.

External Locus of Control

The belief that one’s outcomes or fate are determined by external forces or luck rather than one’s own actions.

Mental and Physical Health

The overall condition or well-being of one’s mind and body, encompassing emotional, psychological, and physical aspects.

Exerting Effort

The act of applying physical or mental energy towards achieving a specific goal or task.