question archive For the American Call option with dividend, I know we can use Black's approximation to check and valued the early exercise time and price

For the American Call option with dividend, I know we can use Black's approximation to check and valued the early exercise time and price

Subject:BusinessPrice: Bought3

For the American Call option with dividend, I know we can use Black's

approximation to check and valued the early exercise time and price.
How about the American Put option with dividend? I knew that the ex-dividend price will be lower, so it probably to wait for ex-dividend.
But is there has a exception? I exercise early I can earn Interest, is Interest > the non-exercise early put value, is it mean I should early exercise?

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE