Which of the following is the lowest possible value of an American call on a stock with no dividends?

Which of the following is the lowest possible value of an American call on a stock with no dividends?





a. Max(0, S0 - X(1 + r)-T)
b. S0
c. Max(0, S0 - X)
d. Max(0, S0 (1 + r)-T - X)
e. none of the above




Answer: A


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