# Tag Info

### Exercising an American call option early

Cases where exercising a call early makes sense: There is a dividend payment the next day that is >= the interest on the strike price + a put with the same strike and expiration. Exercise the ...
• 518
Accepted

### American Options relation between greeks

No, you should not expect such a relationship to hold in general. The reason is that American options have an "exercise barrier" which European options don't, and this results in different prices and ...
• 5,628

### Convexity of an American put option

It is indeed. The price of an American option is the Bermuda option in the limit that the exercising interval approaches zero. The Bermuda option at any exercising time can be evaluated inductively ...
• 2,471
Accepted

### Least Squares Monte Carlo

To compute the price of an American option or a callable instrument in general, at each potential exercise date, one is required to compare its continuation value (discounted risk-neutral expectation ...
• 13.8k
Accepted

### Convexity of an American put option

Here is a much more straightforward proof of the convexity of the American option with respect to a parameter, if it is independent of time and deterministic, than my previous one, though I am happy ...
• 2,471

• 5,542