Can an American-Style Call Option on a Non-Dividend-Paying Asset Be Optimally Exercised Early?
No, it is generally not optimal to exercise an American call option on a non-dividend-paying asset early. By exercising early, the holder receives the intrinsic value but forfeoses the remaining time value (extrinsic value).
It is always better to sell the option in the market or hold it, as its value will be at least equal to its intrinsic value plus any remaining time value.
