Determine how the lime value of an option on a dividend paying stock is related to early exercise. Using the put-call parity: 0 gt; dis (K) + P - PV...

Why do we set P = 0? Can't the put have a larger value than zero?

Determine how the lime value of an option on a dividend paying stock is related to early exercise.Using the put-call parity:0 > dis (K) + P - PV (Div) > dis (K) - PV (Div) where dis (K) is the amount of the discount from face value to account for interest, P is the put option price, and PV (Div) is the presentvalue of the dividends. 80,PV (Div) > dis (K) Le, lhe discount on strike must be smaller than the dividend.