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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