- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 8. Pricing and Valuation of Options
- Subject 2. Arbitrage and Replication
CFA Practice Question
The upper boundary for European puts is decided by ______.
B. underlying spot price only
C. A and B
A. exercise price only
B. underlying spot price only
C. A and B
Correct Answer: A
The upper boundary is the present value of exercise price.
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