It May Make Sense to Exercise Early an American Call

question 6

Multiple Choice

It may make sense to exercise early an American call option (like the ones that trade in the Chicago Board Options Exchange) just before the time of:

• A) a stock dividend payment
• B) a stock split
• C) a reverse stock split
• D) a cash dividend payment
• E) None of these answers are correct.

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Definitions:

DNA Evidence

Genetic material used in courts or investigations to prove the presence or absence of an individual at a crime scene, or to establish paternity or other relationships.

Protists

The group of eukaryotic organisms that are not a plant, fungus, or animal. Protists are generally a microscopic, complex single cell; they evolved before other types of eukaryotes in the history of Earth.

Common Ancestor

The most recent individual from which all organisms in a group are directly descended.

Green Algae

Members of a diverse group of photosynthetic protists; contain chlorophylls a and b and have other biochemical characteristics like those of plants.