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Basic Question 13 of 14

Which of the following makes the early exercise of an American put option less likely?

A. Higher risk-free rate
B. Presence of dividends
C. Sharp decrease in underlying price and volatility

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I passed! I did not get a chance to tell you before the exam - but your site was excellent. I will definitely take it next year for Level II.
Tamara Schultz

Tamara Schultz

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® 2025 Level I Curriculum, Volume 5, Module 8.