Answer: USD 100.00; USD 100.00; USD 87.34; USD 90.00

The correct answer is C: USD 100.00; USD 100.00; USD 87.34; USD 90.00. The explanation for this is rooted in the fundamental principles of option pricing: 1. **European and American Call Options**: The upper bound for both European and American call options is the current stock price. This is because the intrinsic value of a call option, which is the maximum profit if the option were exercised immediately, is the difference between the stock price and the strike price. Since the option price must also include the time value, which is the potential for the stock price to increase before the option's expiration, it cannot exceed the current stock price. 2. **European Put Option**: The upper bound for a European put option is the present value of the strike price. This is because the intrinsic value of a put option is the difference between the strike price and the stock price, but since it's a European option, it can only be exercised at expiration. Therefore, the maximum value before expiration is the present value of the strike price, which accounts for the time value of money. 3. **American Put Option**: The upper bound for an American put option is the strike price itself. Unlike the European put, an American put can be exercised at any time before expiration, which means it can be as valuable as the strike price if the stock price is significantly below the strike price. This is because the holder of the option can exercise it immediately to receive the strike price, which is a guaranteed return. In summary, the upper bounds are determined by the nature of the options (European or American) and the intrinsic value they can provide, with the European call and put options being influenced by the time value of money, while the American call options are capped by the current stock price and American put options by the strike price.

Author: LeetQuiz Editorial Team