An American put might be exercised early even when there are no dividends on the underlying stock.

Question

Quizplus · Accepted Answer

An American put option can be exercised early by the holder at any time prior to expiration. This would enable the holder to sell the underlying stock at the strike price, locking in a profit or minimizing a loss. They may do this even if there are no dividends on the stock, as the decision to exercise is based on other factors such as changes in the stock price or market conditions.

An American Put Might Be Exercised Early Even When There