Explain why the price of an american call option on a stock, Financial Management

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Explain why the price of an american call option on a stock

Using arbitrage arguments explain why the price of an American call option on a stock paying no dividends should be the same as the price of a corresponding European call. Why American calls on a nondividend paying stock should not be exercised early.

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Financial Management: Explain why the price of an american call option on a stock

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