Early Exercise Puts
Quantitative Finance
Level
1
When would you early exercise an American put option on a stock that doesn't pay dividends?
When the time value of money outweighs the insurance value
Never
When the delta of the put is -1
When you have made money on the trade
When the delta of the American call on the same strike is 0
This section requires Javascript.
You are seeing this because something didn't load right. We suggest you, (a) try
refreshing the page, (b) enabling javascript if it is disabled on your browser and,
finally, (c)
loading the
non-javascript version of this page
. We're sorry about the hassle.
0 solutions
No explanations have been posted yet. Check back later!