Give an intuitive explanation of why the early exercise of, Corporate Finance

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Give an intuitive explanation of why the early exercise of

1. A 1-month European put option on a non-dividend-paying stock is currently selling for $2:50. The stock price is $47, the strike price is $50, and the risk-free interest rate is 6% per annum. What opportunities are there for an arbitrageur?

2.Give an intuitive explanation of why the early exercise of an American put becomes more attractive as the risk-free rate increases and volatility decreases.

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Corporate Finance: Give an intuitive explanation of why the early exercise of

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Corporate Finance: Give an intuitive explanation of why the early exercise of

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