Explain why employee stock options on a non-dividend-paying stock are frequently exercised before the end of their

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Explain why employee stock options on a non-dividend-paying stock are frequently exercised before the end of their lives whereas an exchange-traded call option on such a stock is never exercised early.

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Question Posted: Feb 12, 2018 12:17 PM

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Explain why employee stock options on a non-dividend-paying stock are frequently exercised before the end of their

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It is always better for the option holder to sell a ...View the full answer

Options Futures and Other Derivatives

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