1. Option exercise Is it better to exercise a call option on the with-dividend date or on the ex-dividend date? How about a put option? Explain. 2. Option delta Use the put-call parity formula (see...

1. Option exercise Is it better to exercise a call option on the with-dividend date or on the ex-dividend date? How about a put option? Explain.

2. Option delta Use the put-call parity formula (see Section 20-2) and the one-period binomial model to show that the option delta for a put option is equal to the option delta for a call option minus 1.




May 26, 2022
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