Explain why an American call option on a dividend-paying stock is always worth at least as much

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Explain why an American call option on a dividend-paying stock is always worth at least as much as its intrinsic value. Is the same true of a European call option? Explain your answer.

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Fundamentals Of Futures And Options Markets

ISBN: 9781292422114

9th Global Edition

Authors: John Hull

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Question Posted: Mar 05, 2024 01:00 AM

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Explain why an American call option on a dividend-paying stock is always worth at least as much

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An American call option can be exercised at any time If i...View the full answer

Fundamentals Of Futures And Options Markets

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