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

Group of answer choices

Never.

Just before an ex-dividend day.

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

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

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