An American put option is sometimes exercised early because:
A) The holder of an in-the-money option believes that the stock has bottomed out and expects the stock to rise in the future.
B) The absolute time value of the option is larger than the insurance value.
C) The volatility of the stock has just increased.
D) The skewness of the stock has just increased from its initial level.

Question

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The Answer of An American put option is sometimes exercised early because:
A) The holder of an in-the-money option believes that the stock has bottomed out and expects the stock to rise in the future.
B) The absolute time value of the option is larger than the insurance value.
C) The volatility of the stock has just increased.
D) The skewness of the stock has just increased from its initial level.

An American Put Option Is Sometimes Exercised Early Because