How Does the Dividend-like Yield of a Staked Cryptocurrency Affect the American Option Exercise Decision?

A staked cryptocurrency provides a yield similar to a dividend. If an American call option is deep in-the-money and a staking reward is imminent, the holder might exercise early to acquire the underlying asset and capture the yield.

By exercising, the option holder receives the underlying asset and becomes eligible for the staking reward, which outweighs the lost time value of the option. This is a key consideration for American-style crypto options.