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When an American Call Has Been Exercised Early, Which of the Following

Question 11

Multiple Choice

When an American call has been exercised early, which of the following inferences about the stock and option is valid?


A) The stock must pay dividends after the date of exercise.
B) The intrinsic value of the option is positive.
C) The time value of the option is negative.
D) All of the above.

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