高級職員優先認股權物產定價(ppt 16頁)(英文)

Usually there is some chance that an American option will be exercised early
An exception is an American call on a non-dividend paying stock
This should never be exercised early

No income is sacrificed
We delay paying the strike price
Holding the call provides insurance against stock price falling below strike price

For an American call option:
S0 = 100; T = 0.25; X = 60; D = 0
Should you exercise immediately?
What should you do if
You want to hold the stock for the next 3 months?
You do not feel that the stock is worth holding for the next 3 months?

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