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Which of the following describes a situation where an American put option on a stock becomes more likely to be exercised early? Hint: early exercise
Which of the following describes a situation where an American put option on a stock becomes more likely to be exercised early? Hint: early exercise is more likely to happen with reduced time value (1 mark) A. Volatility decreases B. Expected dividends increase C. Interest rates decrease D. All of the above
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