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Derivatives & Options

Early Exercise

Also called: optimal exercise

Exercising an American option before expiry. It's usually a mistake — you throw away remaining time value — but can pay off, for instance to capture a dividend on a call or free up cash on a deep put.

Where this is taught

Definitions are the trailer. These free levels turn Early Exercise into something you play — one bite-size lesson, with worked examples, a quiz and XP.

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