Under what circumstances should an option be exercised early?

What will be an ideal response?


Whenever the dividend gain exceeds both the interest savings on the dividend plus the implicit insurance value of the option.

Business

You might also like to view...

Globaphobia is a term which describes a hostile attitude toward global brands or company policies that appear to result in hardship for some individuals or countries while benefiting others

Indicate whether the statement is true or false

Business

Which of the following statements is FALSE concerning privacy?

a. Most Americans feel they have less privacy today than ever. b. Technology has made protection of copyright easier. c. Electronic technology makes the sharing of information globally easier and at times without the consent of the information's owner. d. A recent Harris poll revealed that over half of the people believe that technology must be controlled to preserve privacy.

Business

The Federal Trade Commission works with the ________ sectors to regulate fraud issues

A) telemarketing B) securities fraud C) communications D) advertising and sales practices

Business

Bob enlists the help of his son to buy a new car. On the way to test-drive several models, Bob

tells his son, "I'm leaving this entire decision up to you except that you are not to spend over $20,000 on whatever car you decide on". At the Toyota dealer, Bob tells the salesperson, "I'm turning this whole decision over to my son, so deal with him even though it will be my car." Later, the son returns to the dealership and negotiates the purchase of a Toyota Camry for $21,500. What type of authority, if any, existed for the son to purchase this car? A) Apparent B) Dependent C) Implied D) No authority existed here E) Actual

Business