Answer: USD100.00;USD100.00;USD87.34;USD90.00

The correct answer is C. For European and American call options, the maximum possible price is equal to the current stock price. The option price can never be higher than the stock price, which means the stock price is the "upper bound." For a European put option, the upper bound is the present value of the strike price, calculated using the formula \( PV = \frac{FV}{e^{rt}} \), where \( FV \) is the future value (strike price), \( r \) is the continuously compounded risk-free rate, and \( t \) is the time to expiration. For an American put option, the upper bound is equal to the strike price, as American options can be exercised at any time before expiration, potentially allowing the holder to sell the stock at the strike price if it's advantageous. Given the current share price of USD 100.00, the continuously compounded risk-free rate of 12% per year, and a 3-month (0.25 years) expiration for the options, the present value of the strike price (USD 90.00) for the European put option would be calculated as follows: \[ PV = \frac{90.00}{e^{(0.12 \times 0.25)}} \] This calculation results in a value slightly less than USD 87.34, which is the upper bound for the European put option. The upper bound for the American put option is simply the strike price of USD 90.00, as the option can be exercised immediately to sell the stock at that price. Therefore, the upper bounds for the prices of a 3-month European-style call option, American-style call option, European-style put option, and American-style put option, respectively, are USD 100.00, USD 100.00, USD 87.34, and USD 90.00.

Author: LeetQuiz Editorial Team