Question
Explain why it is never optimal for an investor to exercise an American call before maturity, when it does not pay dividends before the strike
Explain why it is never optimal for an investor to exercise an American call before maturity, when it does not pay dividends before the strike price. Why this may not be true for an American put?
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
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