Answered You can hire a professional tutor to get the answer.
QUESTION
Case 1: Should you early exercise the following American-style put option? If not always, under what situation would you early exercise?
- Case 1: Should you early exercise the following American-style put option? If not always, under what situation would you early exercise?
Stock price = $2Exercise price = $50Time to maturity = 6 months
- Case 2: Should you early exercise the following American-style call option? If not always, under what situation would you early exercise?
Stock price = $77Exercise price = $75Dividend amount = $0.50Ex-dividend = tomorrowTime to maturity = 2 months
