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Which of the following statements is correct about the early exercise of American options?

a) It is always optimal to exercise an American call option on a non-dividend-paying stock before the expiration date.

b) It can be optimal to exercise an American put option on a non-dividend-paying stock early.

c) It can be optimal to exercise an American call option on a non-dividend-paying stock early.

d) It is never optimal to exercise an American put option on a non-dividend-paying stock before the expiration date.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91398489

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