Question: When could it be optimal to exercise an American call option early (i.e. before an otherwise identical European option could be exercised)? Group of answer

When could it be optimal to exercise an American call option early (i.e. before an otherwise identical European option could be exercised)?

Group of answer choices

Never.

When the bid premium of the option is less than the intrinisic value of the option.

When the spot price of the stock is less than the present value of the strike price.

Just before an ex-dividend day.

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