Which of the following can be valued without using a numerical procedure such as a binomial tree?
A. American put options on a non-dividend paying stock
B. American call options on a non-dividend paying tock
C. American call options on a currency
D. American put options on futures
B
The answer is B because an American call on a non-dividend paying stock is worth the same as the corresponding European call, which can be valued with BSM.
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