early-exercise

  1. Nicole Seaman

    YouTube T3-36: Is it optimal to early exercise an option?

    It is never optimal to early exercise a call option on a non-dividend-paying stock but it may be advisable to early exercise a call on a dividend-paying stock. For a put option, it is maybe optimal to early exercise a put on EITHER a dividend- or non-dividend-paying stock. The primary trade-off...
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