Multiple Choice
An American call option buyer on a nondividend paying stock will
A) always exercise the call as soon as it is in the money.
B) only exercise the call when the stock price exceeds the previous high.
C) never exercise the call early.
D) buy an offsetting put whenever the stock price drops below the strike price.
E) None of the options
Correct Answer:
Verified
Correct Answer:
Verified
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