ABEX Corporation common stock is selling for $50.00 per share. Both an American call option and a European call option are available on ABEX common, and each have identical strike prices and expiration dates. Which of the following statements concerning these two options is TRUE ()
A. Because the American and European options have identical terms and are written against the same common stock, they will have identical option premiums.
B. The greater flexibility allowed in exercising the American option will normally result in a higher market value relative to an otherwise identical European option.
C. The American option will have a higher option premium, because the American security markets are larger than the European markets.
参考答案:B
解析:
Trading in European options is considerably less than trading in American options, because demand for them is much lower. This is due to their relative inflexibility regarding when they can be exercised. The greater exercising flexibility of American options gives them increased value to traders, which normally results in a greater market value relative to an otherwise identical European option.