Question: Produce a graph comparing a calls intrinsic value [defined as max(S-K,0)] and its Black-Scholes price. From the graph you should be able to deduce that

Produce a graph comparing a calls intrinsic value [defined as max(S-K,0)] and its Black-Scholes price. From the graph you should be able to deduce that it is never optimal to exercise early a call priced by the Black-Scholes formula. Discuss your results in relation to option theory.

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