1) Which of the following statements is true? i

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1) Which of the following statements is true?

i.                    An upper bound on the prices of both American and European calls is the strike price.

ii.                  A lower bound on the price of an American call is the stock price less the present value of the strike price less the present value of dividends.

iii.                A lower bound on the price of an American put is the sum of the present value of the strike price and the present value of dividends less the stock price.

A.     i and ii

B.      ii and iii

C.      i and iii

D.     All of the above

E.      None of the above