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:

Cubic

A common arrangement of atoms in a mineral or the tendency for a mineral to break along three perpendicular planes.

Perpendicular Directions

directions at right angles (90 degrees) to each other.

Nonperpendicular Directions

Directions or orientations that are not at a right angle (90 degrees) to a baseline or reference point.

Explosive Volcanic Eruption

A volcanic eruption characterized by the violent expulsion of magma, gas, and debris from a volcano, often associated with high levels of volcanic ash and pyroclastic flows.