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Under what circumstances should an American call option on a stock paying no dividends be exercised early? What is the putcall parity equation for a

  1. Under what circumstances should an American call option on a stock paying no dividends be exercised early?
  2. What is the putcall parity equation for a stock paying no dividends?
  3. The early exercise of an American put is a trade-off between the time value of money and the insurance value of a put. Explain this statement.

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