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**pymnConyelell** · 05-06-2010, 12:29 AM

Obviously the price of an American option is at least the price of the European option. The point is that if the interest rate is 0 and there are no dividends, it turns out that you never exercise the American option before the expiration so they are the same.

No offense, but I'm pretty sure this math is beyond your training and you couldn't have actually helped me.

05-06-2010, 12:29 AM	#7
pymnConyelell Join Date Nov 2005 Posts 412 Senior Member	Obviously the price of an American option is at least the price of the European option. The point is that if the interest rate is 0 and there are no dividends, it turns out that you never exercise the American option before the expiration so they are the same. No offense, but I'm pretty sure this math is beyond your training and you couldn't have actually helped me.
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