n NISM Certifications
XIII NISM Series XIII
Medium

If all other features are the same, an American Call Option will have a higher value than that of a European option. State whether True or False?

Practice question from NISM Series XIII for SIF - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    The above statement is FALSE

  2. The above statement is TRUE

    Correct answer

  3. C

    Value depends on market conditions and this cannot be ascertained

  4. D

    Inadequate information

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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NISM Series XIII for SIF - Mock Test 2