Why is an American option always worth more than its intrinsic value? (As an example, recall that

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Why is an American option always worth more than its intrinsic value? (As an example, recall that the intrinsic value at time t for the call option is max(S(t) − K; 0).)

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Organic Chemistry

ISBN: 9788120307209

6th Edition

Authors: Robert Thornton Morrison, Robert Neilson Boyd

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Question Posted: Jun 29, 2016 12:58 AM

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Why is an American option always worth more than its intrinsic value? (As an example, recall that

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Because we can always exercise immediately and receive the intrinsic value W...View the full answer

Organic Chemistry

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