Which of the Following Types of Option Is More Valuable

question 15

Multiple Choice

Which of the following types of option is more valuable?

• A)American put option
• B)European put option
• C)Need additional information
• D)Neither one

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Definitions:

Aggregate Income

The sum of earnings for all people and organizations within a specific economic system.

Consumption Function

A mathematical expression in economics showing how total consumption is related to the gross national income.

Consumption Function

A financial equation that illustrates the correlation between overall consumption and the gross national income.

Aggregate Income

The total income earned by all individuals or entities in an economy, including wages, profits, rents, and investment income, before taxes.