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Basic Question 10 of 11

The effect of dividends on a stock on early exercise of an American call is to ______.

A. make early exercise less likely
B. have no effect on early exercise
C. make early exercise more likely

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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

Barnes

Learning Outcome Statements

contrast the use of arbitrage and replication concepts in pricing forward commitments and contingent claims

CFA® 2024 Level I Curriculum, Volume 5, Module 8.