Reconsider the above problem. Show that if the date 1 exercise price is X , the date
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Reconsider the above problem. Show that if the date 1 exercise price is X , the date 2 exercise price is X *(1 + r), and the date 3 exercise price is X*(1 + r )2, you will not exercise the option early.
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Early exercise of an options contract is the process of buying or selling shares of stock ...View the full answer
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