1 why is an american option always worth more than a, Ask an Expert

Finance

1. Why is an American option always worth more than a corresponding European option?

2. Why is a call always worth less than the underlying stock? Why is a put always worth less than its strike price?

3. Why do we assume borrowing/lending at risk-free rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92715224

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