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1. In your own words, explain the following in detail: a. Why the price of an American call option on a stock paying no dividends

1. In your own words, explain the following in detail:

a. Why the price of an American call option on a stock paying no dividends should be the same as the price of a corresponding European call.

b. Why American calls on a nondividend paying stock should not be exercised early.

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