For a dividend paying stock, an investor may be wise to exercise an American call option before its expiration date.

Name: For a dividend paying stock, an investor may be wise to exercise an American call option before its expiration date.
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An American call option gives the holder the right to exercise the option at any time before its expiration date. If the stock is paying a dividend, the holder may be wise to exercise the option before the ex-dividend date to receive the dividend.

For a Dividend Paying Stock, an Investor May Be Wise