Question
Consider an American call option on a stock that does not pay dividends. Would you ever exercise the call option before the maturity date? A.
Consider an American call option on a stock that does not pay dividends. Would you ever exercise the call option before the maturity date?
A. No. Early excercise is never optimal for American calls on non-dividend paying stocks
B. Yes. You just need to figure out when
C. Maybe. It just depends on the stock price
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International Financial Markets And The Firm
Authors: Piet Sercu, Raman Uppal
1st Edition
1861523548, 978-1861523549
