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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 used your notes and passed ... highly recommended!
Lauren

Lauren

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.