Explain in Simple Terms Why a Call Option on a Non-Dividend

question 14

Essay

Explain in simple terms why a call option on a non-dividend paying stock should never be exercised early.

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Definitions:

Skill-building

The process of developing and enhancing abilities or competencies in a specific area.

Cortisol

A steroid hormone, produced by the adrenal gland, that regulates a wide range of processes throughout the body, including metabolism and the immune response. It's commonly known as the "stress hormone."

Depression

A psychological impairment characterized by continuous depressive emotions or apathy towards customary engagements, heavily disrupting normal daily functioning.

Immune Functioning

The processes and activities carried out by the immune system to protect the body against diseases, infections, and foreign substances.