Compared to European put options on an ass

问题单项选择题

Compared to European put options on an asset with no cash flows, an American put option: （）

A. will have a higher, lower bound on its price.

B. will have a lower, lower bound on its price.

C. will have the same lower bound on its price.

答案

参考答案：A

解析：

Early exercise of an in-the-money American put option on an asset with no cash flows can generate more, X-S, than the minimum value of the European option, X/(1+R)^T-S. The possibility of profitable early exercise leads to a higher, lower bound on the price of the American put option.