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Basic Question 7 of 9

In general, the expectations approach can be used to value ______.

A. American-style options only
B. European-style options only
C. both American-style and European-style options

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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

Edward Liu

Learning Outcome Statements

calculate the no-arbitrage values of European and American options using a two-period binomial model;

identify an arbitrage opportunity involving options and describe the related arbitrage;

CFA® 2025 Level II Curriculum, Volume 5, Module 32.