单选题
Prior to expiration, an American put option on a stock: A. is bounded by S-X/(1 +RFR)T B. will sell for its intrinsic value. C. will never sell for less than its intrinsic value.
【正确答案】
C
【答案解析】 At any time t, an American put will never sell below intrinsic
value, but may sell for more than that. The lower bound is Max [ 0, X
-St ].