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Basic Question 13 of 14
Which of the following makes the early exercise of an American put option less likely?
B. Presence of dividends
C. Sharp decrease in underlying price and volatility
A. Higher risk-free rate
B. Presence of dividends
C. Sharp decrease in underlying price and volatility
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
identify the factors that determine the value of an option and describe how each factor affects the value of an option
CFA® 2026 Level I Curriculum, Volume 5, Module 8.