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Basic Question 2 of 9
The effect of dividends on a stock with an American call is to ______.
B. have no effect on early exercise
C. make early exercise more likely
A. make early exercise less likely
B. have no effect on early exercise
C. make early exercise more likely
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I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
calculate the no-arbitrage values of European and American options using a two-period binomial model;
identify an arbitrage opportunity involving options and describe the related arbitrage;
CFA® 2025 Level II Curriculum, Volume 5, Module 32.