- CFA Exams
- CFA Level I Exam
- Topic 7. Derivatives
- Learning Module 8. Pricing and Valuation of Options
- Subject 3. Factors Affecting Option Value
CFA Practice Question
Which factors DISCOURAGE early exercise of American puts?
II. Storage costs if the underlying is a commodity
III. Coupon interests if the underlying is a bond
I. Dividends if the underlying is a stock
II. Storage costs if the underlying is a commodity
III. Coupon interests if the underlying is a bond
Correct Answer: I and III
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