Which of the Following Are Not Path-Dependent Options When the Stock

question 7

Multiple Choice

Which of the following are not path-dependent options when the stock pays a constant dividend yield?

• A)European calls and European puts
• B)European calls and American puts
• C)American puts and European puts
• D)American puts and European calls
• E)none of the above

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Definitions:

Total Current

The overall flow of electric charge through a circuit, determined by the sum of all individual current paths within the circuit.

Parallel Circuit

An electric circuit in which the same voltage is applied across multiple paths, allowing current to divide among the paths.

Inductive Reactance

The opposition to the change in current flow in a circuit element caused by its inductance, affecting the phase angle between voltage and current in AC circuits.

Reactive Power

The component of electric power that oscillates between the source and load, associated with the energy stored in the field of an inductor or capacitor.