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Derivatives Q104

0. Which of the following is most likely to be the maximum price of a European put option at time, t?

  • Option : B
  • Explanation : The maximum price of a European put option is the present value of the exercise price of the option. The price of the underlying stock at time, t, is the maximum value for a European Call option. The exercise price of the option is the maximum value for an American put option.
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