Some questions about covered calls

I took a test recently and was given this feedback: Can you help me understand why my answers are wrong?

Question 1: When is an investor who has written a covered equity call option likely to be assigned early for a dividend?

My answer: Before any dividend is paid to underlying shareholders.

Correct answer: When the call is in-the-money; its time premium is less than the dividend amount.

Question 2: The risk of being assigned early on covered equity calls will vary with which of the following variables:

Answers:

A. The amount by which the calls are in the money B. Whether the equity option in question is American-style or not C. Whether or not the stock pays a dividend and its ex-date. D. All of the above (I chose D) E. Only A and C

Question 3:

While rolling out a buy/write can generally be done for a credit, rulling up and out may sometimes be done for a credit, sometimes for even money and sometimes for a debit.

True/false. (I chose true).

What makes me wrong? Can't simply having an upcoming EX date increase my chances of early assignment? Isn't American style something that can increase it? Can't call prices vary enough that a roll up/out can be positive, negative, or even?

Submitted December 05, 2014 at 02:38PM by myteflthrowaway http://ift.tt/1CNMZiZ