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Easy question, it won't take long. Case 1: Should you early exercise the following American-style put option? If not always, under what situation would you
Easy question, it won't take long.
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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 Exercise price = $50 Time to maturity = 6 months
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- 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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