a. Is there a simple rule of thumb that you can use to know when to exercise
Question:
a. Is there a simple rule of thumb that you can use to know when to exercise an American call early? If yes, explain the rule.
b. Is there a simple rule of thumb that you can use to know when to exercise an American put early? If yes, explain the rule.
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The following two simple rules can be used to determine optimal exercise for both American calls and ...View the full answer
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Related Book For 
An Introduction to Derivative Securities Financial Markets and Risk Management
ISBN: 978-0393913071
1st edition
Authors: Robert A. Jarrow, Arkadev Chatterjee
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