Why Is Early Exercise of an American Call Option on Crypto Often Suboptimal? ▴ Learn

Why Is Early Exercise of an American Call Option on Crypto Often Suboptimal?

Early exercise of an American call option on a non-dividend-paying asset like crypto is suboptimal because it forfeits the remaining time value of the option. The holder is better off selling the option in the market for its premium (intrinsic + time value) rather than exercising for only the intrinsic value.

What Is the Opportunity Cost of Exercising a Deep In-the-Money American Call Option Early?

Why Is the Early Exercise Feature of American Options Rarely Used in Practice?

Why Is Early Exercise Generally Not Optimal for a Non-Dividend-Paying American Call Option?

Why Are American Options Rarely Exercised Early in the Equity Market?