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Show that the American call option i s never optimal t o b e exercised before maturity. That i s , show that for any

Show that the American call option is never optimal tobe exercised before maturity. That is, show that for any 0n<mN,
(S-K)Ee-r(m-n)(S-K).n+m+
(Hint: Use Jensens inequality and the face that the map x(x)+is convex.)

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