a. Explain why it would not be economical for the buyer of an American call option on a non-dividend-paying stock to exercise the option prior to the expiration date.

b. Is this reasoning true for an American cell option on a dividend-paying stock? Under what circumstances (if any) would early exercise be economical?

c.Would it be economical for the buyer of an American put option to exercise the option early?(Hint: Think about what happens if the price of the stock falls to zero before the expiration date.)