Question: Which statement is INCORRECT about options? A known dividend can be incorporated into an adjusted put-call parity (still an equality) for European options: Given strictly

 Which statement is INCORRECT about options? A known dividend can be

Which statement is INCORRECT about options? A known dividend can be incorporated into an adjusted put-call parity (still an equality) for European options: Given strictly positive interest rates and an underlying stock that pays no dividends, the best way to close out a long American call option position early is to sell a call option. You never want to exercise American call options early You may want to exercise American put options early

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!