Consider Two Identical European Call Options on Two Identical Stocks

question 2

Multiple Choice

Consider two identical European call options on two identical stocks A and B, except that the former stock pays dividends and the latter stock does not. Which of the following statements is most valid?

• A) Call A is greater in value than call B.
• B) The time value of call A is greater than that of call B.
• C) The time value of call B is greater than that of call A.
• D) The insurance value of call B is greater than that of call A.

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Understand the historical development of public health initiatives and their impact on community health.

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