Financial Risk Manager Part 1

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

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A

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

B

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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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