Consider an American Call Option and an American Put Option

question 13

Multiple Choice

Consider an American call option and an American put option, on the same dividend-paying stock, both for the same strike and maturity. Which of the following statements is most accurate?

• A) Either both options are exercised or neither one is exercised early.
• B) If the call is exercised early then the put will not be exercised early.
• C) If the put is exercised early then the call will not be exercised early.
• D) Both options may be exercised early.

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