Why is an American call option rarely exercised early, and thus priced similar to European options?

A) Early exercise requires purchasing the stock
B) Most option sellers cannot deliver the stock
C) Option prices usually exceed intrinsic values
D) Short sellers disrupt delivery


C

Business

You might also like to view...

What is an example of an alternative dispute resolution method?

A. outplacement counseling B. arbitration C. employment assistance programs D. benchmarking E. carve-out

Business

In the context of business risks, how can an entrepreneur identify competitors to a new potential business?

A. By performing a gap analysis evaluation to identify potential competitors B. By observing the market and identifying companies that have seen the maximum growth in the past quarter C. By observing what potential customers do to satisfy their current needs or wants D. By conducting a brainstorming session with other entrepreneurs

Business

Planned value is ______.

a. the total budget b. a way to identify the expenditures at any one stage in the project c. a cost estimate of the budgeted resources scheduled across the project’s life cycle (cumulative baseline) d. the real budgeted cost, or value, of the work actually performed to date

Business

Which of the following is not one of the general categories of torts?

A) Negligence B) Rational C) Strict liability D) Intentional

Business