Case 1 Should you early exercise the following American style put option If not always, under what situation would you early exercise Stock price $2 Exercise price $50 Time to maturity 6 months Case 2 Should you early exercise the following American style call option If not always, under what situation would you early exercise Stock price $77 Exercise price $75 Dividend amount $0 50 Ex dividend tomorrow Time to maturity 2 months

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Case 1: Should you early exercise the following American-style put option? If not always, under what situation would you early exercise? Stock price = $2

- Case 1: Should you early exercise the following American-style put option? If not always, under what situation would you early exercise?

Stock price = $2 Exercise price = $50 Time to maturity = 6 months

- Case 2: Should you early exercise the following American-style call option? If not always, under what situation would you early exercise?

Stock price = $77 Exercise price = $75 Dividend amount = $0.50 Ex-dividend = tomorrow Time to maturity = 2 months

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