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What is Early Exercise? Early exercise refers to the option holder’s ability to buy or sell shares underlying an American-style options contract prior to its expiration date. By choosing early exercise, a trader can enjoy advantages such as dividend capture and favorable tax treatment. However, it’s essential to understand that
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Introduction to American Options American options are a popular investment instrument in the world of finance and trading that offers more flexibility compared to European options. The primary difference between the two lies in their execution timelines. American options enable investors to exercise their option rights at any moment before
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