Which One of the Following Statements Concerning European Options Is

question 260

Multiple Choice

Which one of the following statements concerning European options is correct?

• A) A European call can be exercised at any time up to and including the expiration date.
• B) A European call is more valuable than an American call based on its characteristics.
• C) A European option has value only if it is in-the-money at expiration.
• D) The value of a European call cannot be computed using the Black-Scholes model.
• E) European options cannot legally be issued in North America.

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