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While there are specific cases in which American and European op- tions with the same features (i.e. the same underlying, maturity and strike) have the

While there are specific cases in which American and European op- tions with the same features (i.e. the same underlying, maturity and strike) have the same premia, explain why, in general, one might ex- pect American option premia to be greater than those for similar Eu- ropean options. [Write no more than 15 sentences in your answer.]

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