Financial Risk Manager Part 1
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Which of the following correctly describes the impact of dividends on option value?
A
Dividends have no effect on European call options but reduce the value of American call options.
B
Dividends increase the value of European put options but decrease the value of American put options.
C
Dividends decrease the value of both European and American call options, but the value of American put options is unaffected.
D
With dividends, the value of American put options exceeds the value without dividends.