Which of the Following Is True

question 20

Multiple Choice

Which of the following is true?

• A) An American call option on a stock should never be exercised early
• B) An American call option on a stock should never be exercised early when no dividends are expected
• C) There is always some chance that an American call option on a stock will be exercised early
• D) There is always some chance that an American call option on a stock will be exercised early when no dividends are expected

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Definitions:

Achaemenids

Refers to the first Persian Empire, ruled by the Achaemenid dynasty from approximately 550-330 BCE, known for its impressive administration system, monumental architecture, and multicultural approach to governance.

Lion Capital

The top part of an Ashokan pillar, famously known as the national emblem of India, featuring four lions standing back to back.

Ashoka

was an ancient Indian emperor of the Maurya Dynasty, who ruled the Indian subcontinent from c. 268 to 232 BCE, known for his conversion to Buddhism and spreading Buddhist principles.

Upanishads

South Asian religious texts of ca. 800–500 BC that introduced the concepts of samsara, karma, and moksha.