Which of the following statements regarding American puts is/are true?
A. An American put can be exercised any time before expiration
B. An American put is always more valuable than an equivalent European put
C. Multi-period binomial model can be used to value an American put
D. All of the above
Answer:D
Which of the following statements regarding American puts is/are true?
A. An American put can be exercised any time before expiration B. An American put is always more valuable than an equivalent European put C. Multi-period binomial model can be used to value an American put D. All of the above