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With American Put options: It is never advisable to exercise early because you will lose time value and are better off selling the options It
With American Put options: It is never advisable to exercise early because you will lose time value and are better off selling the options It is advisable to exercise if the option is deep in the money because time value of the option can be smaller than the interest you can earn on the exercised cash amount. It is always advisable to exercise only It is advisable to exercise if the option is deep out of the money because it will have close to zero value anyway It is never advisable to exercise early because the expiry value will always be worth more than the current price
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