By Gordon Ho - 9/11/2012 6:29:54 PM
I believe it does not apply to dividend paying stock. However, how about non-dividend paying stock?
[NEAS: Exercising a call option early is not optimal unless the stock pays dividends. But exercising a put option early may be optimal – especially if the stock does not pay dividends, so put call parity does not apply in the simple form shown in the textbook.]
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