The Lower Bound of a European Call on a Non-Dividend

question 1

True/False

The lower bound of a European call on a non-dividend paying stock is lower than the intrinsic value of an American call.

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Definitions:

Capsid

Protein coat surrounding the nucleic acid of a virus.

Envelope

A flat, usually rectangular or square paper container used for sending letters or documents, or the outer covering of a structure.

Pilus

A hair-like appendage found on the surface of many bacteria, involved in adhesion to surfaces and in bacterial conjugation.

Endotoxins

Toxic substances bound to the bacterial cell wall and released when the bacteria disintegrates.