Question: 3. Using arbitrage arguments explain why the price of an American call option on a stock paying no dividends should be the same as


 3. Using arbitrage arguments explain why the price of an American call

3. Using arbitrage arguments explain why the price of an American call option on a stock paying no dividends should be the same as the price of a corresponding European call. Why American calls on a nondividend paying stock should not be exercised early.

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