Why is an American option with a longer time to expiration generally worth more than an otherwise

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Why is an American option with a longer time to expiration generally worth more than an otherwise identical option with a shorter time to expiration?

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Fundamentals of Corporate Finance

ISBN: 978-0132148238

2nd edition

Authors: Berk, DeMarzo, Harford

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Question Posted: Jan 14, 2012 02:25 AM

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Why is an American option with a longer time to expiration generally worth more than an otherwise

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Fundamentals of Corporate Finance

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