At Inception,which of the Following Options Would Have the Lowest

question 15

Multiple Choice

At inception,which of the following options would have the lowest value? Assume that the strike price of all the options is set equal to the current price of the underlying stock.

• A)Arithmetic average Asian call option.
• B)Geometric average Asian call option.
• C)Vanilla European call.
• D)Vanilla American call.

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Definitions:

Marginalization

The process of pushing certain groups or individuals to the edge of society by not allowing them an active voice, identity, or rights.

Dominant Group

A social group that possesses the greatest power, resources, and social status within a society, exerting control and setting standards.

Marginalized Member

An individual or group that is pushed to the fringe of society and deprived of social and economic participation, often due to factors like race, gender, or economic status.

Equality

Fairness and justice achieved through same treatment.