单选题

Which statement best describes the early exercise of American options? Early exercise may be advantageous for:

A、 both deep-in-the-money calls and deep-in-the-money puts.
B、 deep-in-the-money puts.
C、 deep-in-the-money calls.

【正确答案】 B

【答案解析】

Only deep-in-the-money put options may be exercised early. The price cannot fall below zero and thus the additional upside of such an option is limited.