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Basic Question 0 of 9
An American option is more valuable than a European option on the same dividend-paying stock with the same terms because the ______
B. American option can be exercised from the date of purchase until expiration but the European option can be exercised only at expiration.
C. European option does not conform to the Black-Scholes model and is often mispriced.
D. American options are traded on U.S. exchanges, offering much more volume and liquidity.
A. European option contract is not adjusted for stock splits and stock dividends.
B. American option can be exercised from the date of purchase until expiration but the European option can be exercised only at expiration.
C. European option does not conform to the Black-Scholes model and is often mispriced.
D. American options are traded on U.S. exchanges, offering much more volume and liquidity.
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
describe uses of private business valuation and explain applications of greatest concern to financial analysts;
CFA® 2025 Level II Curriculum, Volume 4, Module 25.