ramzes

Miss*Yiota Wrote:
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> So based on what has been said here, I have a
> concern with one question i did. The question said
> it doesn't worth it to exercise an american call
> option before expiration, and the answer said the
> statement is true. I would have said it's not
> correct since we can exercise prior to the
> ex-divid date.
> Any thoughts guys ? I found it tricky as answer


I think we need more detail on the question. It would be true on a non-dividend paying stock, a futures contract, a forward contract, etc..