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| visits | member for | 1 year, 1 month |
| seen | Apr 15 at 23:31 | |
| stats | profile views | 5 |
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May 13 |
comment |
Exercising an American call option early Great, thanks. The rationale I read only gave the reason that you'll lose interest on the cash you spend to exercise the call option. |
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May 13 |
comment |
Exercising an American call option early Okay, so say that the stock is going to go down to $15, lower than the exercise price - the option will be worthless, I'll make a loss. But had I exercised when the stock price was higher than the exercise price (not necessarily highest) I'd have made a profit. Isn't that more optimal than the loss that has been made by holding onto the option until expiry? |
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May 13 |
comment |
Exercising an American call option early But my example describes a profit that wouldn't be possible if the option was European, why isn't that a benefit? |
