@David Harper CFA FRM Thank you very much and sorry for the not looking vertically as you mentioned before! This makes much more sense for me!
Regarding the why American call option is not optimal to be exercised if interest rates are zero? I think the question is without dividend, which as you said value of waiting is zero and hence it is the same whether we will exercise it today or tomorrow, right?
Regarding the why American call option is not optimal to be exercised if interest rates are zero? I think the question is without dividend, which as you said value of waiting is zero and hence it is the same whether we will exercise it today or tomorrow, right?
