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It is well-known that an American call option written on non-dividend paying stock shouldnt be exercised early. Please explain why an American futures call might
It is well-known that an American call option written on non-dividend paying stock shouldnt be exercised early. Please explain why an American futures call might ever be worth exercising early, even if the underlying stock of the futures doesnt pay any dividend. (Hint: what is the risk neutral probability for pricing future option, and what is the risk neutral probability for pricing a stock option where the stock is dividend paying?)
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