Why is an American call option on a dividend-paying stock always worth at least as much as

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Why is an American call option on a dividend-paying stock always worth at least as much as its intrinsic value. Is the same true of a European call option? Explain your answer.

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Options Futures And Other Derivatives

ISBN: 9780273759072

8th Global Edition

Authors: John Hull

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Question Posted: Oct 21, 2024 09:00 AM

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Why is an American call option on a dividend-paying stock always worth at least as much as

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Options Futures And Other Derivatives

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