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I get that the premium for an earlier exercise should be higher to compensate the seller but intuitively you would think that the spot has "less room to run" in a potentially shorter period of time (due to a potential earlier exercise compared to the European counterpart).... am i thinking about this correctly? What am I missing?

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    $\begingroup$ what is the meaning of implied volatility for Bermudans? $\endgroup$ – Canardini Feb 24 at 4:59
  • $\begingroup$ Are Bermudan options not typically valued using a binomial tree approach? I assume the implied volatility would (or could) be the volatility that when used as input in a binomial tree model produces the observed market price of the Bermudan. $\endgroup$ – Oscar Mar 26 at 6:58
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Optionality always benefits the holder of the option (since the payoff will be the higher of exercising the option or not), so an option with more "optionality" (in this case, more opportunities to choose exercise) will always be worth more.

I don't see where your question has anything to do with "implied" volatility.

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