12. American Option Pricing
o. explain under which circumstances the values of European and American options differ.
Are American options priced higher or lower than European options? American option prices must always be no less than those of otherwise equivalent European options.
Source:
CFA
Graph:
- 115.080.02 Derivatives - Reading 49 - Basics of Derivative Pricing and Valuation to 115.080.02.12 - Reading 49 - 12. American Option Pricing