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Consider an American Call Option and an American Put Option

Question 13

Multiple Choice

Consider an American call option and an American put option, on the same dividend-paying stock, both for the same strike and maturity. Which of the following statements is most accurate?


A) Either both options are exercised or neither one is exercised early.
B) If the call is exercised early then the put will not be exercised early.
C) If the put is exercised early then the call will not be exercised early.
D) Both options may be exercised early.

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