In most instances an American call option should not be exercised early.

Question

Quizplus · Accepted Answer

It is usually not rational to exercise an American call option early because the option-holder would forfeit the time value remaining in the option contract. The only scenario where early exercise may be beneficial is when the option is close to expiration, and the underlying security is expected to pay a dividend or other event that could significantly impact its value. However, this is a rare occurrence, and thus, it is generally advisable for option holders to wait until the expiration date before exercising the option.

In Most Instances an American Call Option Should Not Be