American Option forumla using Compound Option

[Nanook]

Please excuse my formatting for this question:

CoP = Call on Put
PoC = Put on Call

I know the formula for an American Call option is:
C(Amer) = S - Ke^-rt + CoP

What is the formula for an America Put option using compound option?
P(Amer) = Ke^-rt - S + PoC ????

[Epsilon5]

The ASM manual states that most American options don't have a closed-form formula, and that the call with a single discrete dividend (the formula you cited) is an exception.

Since the American put may be worth more than a European put after the single discrete dividend (where the American call was equal to its European counterpart), I don't think that the value you proposed for the American put will work.

Please correct me if I'm wrong.

[Math]

American options can be priced that way because it might be worth exercising right before a divident is paid. A put does not follow that same reasoning, hence we really don't have a formula in terms of compound options. I am not aware of one.

[MusaAli]

Did u actually come across a question on that? cuz i haven't seen any yet :/

[Nanook]

I did not come across a question like that (and now I know why). I was just worrying too much trying to prepare myself in case I did.

Thanks for your help everyone.