here is my question, why cant it be american call, you dont have to wait to cash in your shares, no?
I think:
In real life it can be and probably is, but if you use binomial or black scholes model you must use European options. Just because that is the limitation of the model. Because Americans can be exercised whenever, valuing them is not as simple as looking at up or down nodes because you don’t have to exercise them during these nodes, you can exercise them in the middle
sometimes like that?
thats true BS requires no cash flow European option, I wonder if thats why