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elf_fu elf_fu
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6 years ago
Why is an American call option rarely exercised early, and thus priced similar to European options?
A) Early exercise requires purchasing the stock
B) Most option sellers cannot deliver the stock
C) Option prices usually exceed intrinsic values
D) Short sellers disrupt delivery
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
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phuongha2892phuongha2892
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6 years ago
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elf_fu Author
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#2
6 years ago
Thank you Heavy Heart
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