Appreciate some help with a problem i am facing
OK, so first I found a put and call option with same strike price and maturity for both American-style and European-style options. I selected the ones closest at-the-money with a maturity of 36 days. Data looks like this for the European:
S 611,1 : X 610 : R 0,09 : T 0,098630137
call price 7,85 : put price 0
And for the American:
call price 11,7
put price 12
theoretical minimum put price: 5,209167313
My question is: What is the reason for the difference between American style and European style options when they have the same exercise price and maturity?
Appreciate all help! Thanks!