The gain from the early exercise of an American put is X(1 + r)^-T - S₀.

Name: The gain from the early exercise of an American put is X(1 + r) -T - S 0 .
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Quizplus · Accepted Answer

The formula provided is not a recognized formula for calculating the gain from the early exercise of an American put option. The gain from early exercise typically depends on the difference between the strike price and the current stock price, not the complex expression given.

The Gain from the Early Exercise of an American Put