Explain why it is never optimal to exercise an American call option on a non-dividend- paying stock

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Explain why it is never optimal to exercise an American call option on a non-dividend- paying stock before expiration. Give two reasons.

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Options Futures and Other Derivatives

ISBN: 978-0134472089

10th edition

Authors: John C. Hull

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Posted Date: Jan 17, 2020 01:06 AM

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Explain why it is never optimal to exercise an American call option on a non-dividend- paying stock

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option has time value and intrinsic valueso if stock is non div... View the full answer

Options Futures and Other Derivatives

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