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

## Explanation **C is correct** because: - **European and American call options**: The maximum possible price is equal to the current stock price (USD 100.00). No rational investor would pay more for an option than the current price of the underlying asset. - **European put option**: The upper bound is the present value of the strike price. With strike price K = 90, risk-free rate r = 12%, and time T = 0.25 years: \[PV(K) = K \times e^{-rT} = 90 \times e^{-0.12 \times 0.25} = 90 \times e^{-0.03} = 90 \times 0.9704 = 87.34\] - **American put option**: The upper bound is equal to the strike price (USD 90.00). Since American options can be exercised immediately, the maximum value cannot exceed the immediate exercise value. **Why other options are incorrect:** - **A**: Incorrectly uses present value for call options and present value for American put option - **B**: Incorrectly uses present value for European call and strike price for European put - **D**: Incorrectly uses strike price for European put instead of present value of strike price

Author: LeetQuiz .