Since Dividends Could Trigger an Early Exercise of an American

question 31

True/False

Since dividends could trigger an early exercise of an American call,the Black-Scholes-Merton dividend adjustment will provide the correct price of an American call.

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Definitions:

Class Exception

In programming, it refers to a template for creating objects designed to handle errors and other exceptional situations uniquely.

Constructors

Special methods in a class that are called when a new object instance is created, used to initialize the object.

StringIndexOutOfBoundsException

An exception in Java that is thrown to indicate that an index is either negative or greater than the size of the string.

ParseInt

A method in Java that converts a string into an integer value, throwing an exception if the string cannot be converted.