Consider the Following At-The-Money Options, All of the Same Maturity $C _ { E }$

question 32

Multiple Choice

Consider the following at-the-money options, all of the same maturity: a vanilla European call ( $C _ { E }$ ) , an American vanilla call ( $C _ { A }$ ) , a fixed-strike lookback call ( $C _ { L }$ ) . Which of the following is correct?

• A) \(C _ { L } \leq C _ { E } \leq C _ { A }\)
• B) \(C _ { L } \leq C _ { E } \leq C _ { A }\).
• C) \(C _ { E } \leq C _ { A } \leq C _ { L }\)
• D) \(C _ { A } \leq C _ { E } \leq C _ { L }\).

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Pure Rate

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