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Homework answers / question archive / American call options on shares are rarely exercised before expiry date because: Group of answer choices A

American call options on shares are rarely exercised before expiry date because: Group of answer choices A

Finance

American call options on shares are rarely exercised before expiry date because:

Group of answer choices

A. it sacrifices the option’s time value

B. it never pays to exercise before a share goes ex-dividend

C. it is too risky to exercise an option before its expiry date

D. it sacrifices the option’s intrinsic value

Option 1

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Option 2

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