Consider an American Call Option and an American Put Option,on

question 10

Multiple Choice

Consider an American call option and an American put option,on the same dividend-paying stock,both for the same strike and maturity.Which of the following statements is most accurate?

• A)Either both options are exercised or neither one is exercised early.
• B)If the call is exercised early then the put will not be exercised early.
• C)If the put is exercised early then the call will not be exercised early.
• D)Both options may be exercised early.

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Definitions:

EEG

Electroencephalography, a non-invasive method to record electrical activity of the brain used in the diagnosis of various neurological conditions.

Specific Sensory Event

A distinct occurrence that is perceived by one of the senses, such as sight, hearing, smell, taste, or touch.

ERP

Event-Related Potential; a measured brain response that is the direct result of a specific sensory, cognitive, or motor event.

Non-Invasive

Procedures or techniques that do not require entering the body or breaking the skin, often used in medical treatments and diagnostics to reduce risk and discomfort.