Why is this the case? The possibility of early exercise is not valuable for call options on non-dividend paying stocks, so the value of the American call is the same as the value of the European call, and the difference in value is zero. I thought there was always value to be able to exercise early.
Long explanation: See book Short explanation: If you want to exercise it, you are blowing away the time value which can be sold to someone else. Always sell the call instead of exercising it early.
because of non-negative time value, you’d be better off selling the option than excercising
thanks guys…clear now