Question: 2. Explain why it can be rational to exercise an American put option early while it is never rational to exercise an American call option

2. Explain why it can be rational to exercise an American

2. Explain why it can be rational to exercise an American put option early while it is never rational to exercise an American call option early. Assume the option is on a non dividend paying stock and the investor plans to hold the stock until expiration if the call is exercised. - 2. Explain why it can be rational to exercise an American put option early while it is never rational to exercise an American call option early. Assume the option is on a non dividend paying stock and the investor plans to hold the stock until expiration if the call is exercised

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