The Bjerksund-Stenslund model is an options pricing model contrived by Petter Bjerksund and Gunner Stensland and later proposed in their publication, American Exchange Options and a Put-call Transformation which was released in 1992 shortly proceeding their discovery and is available online for free at the following link: https://drive.google.com/file/d/1dRpXum4tJ_qvCvm_QJdpuXlxt2lv8yG3/view. This model is prevalently implemented by investors to ascertain an American options optimal date of execution; however, it frequently fails to confer the most optimal exercise strategy due to the broad assumptions and estimates involved in its calculation. The model is employed to more precisely determine the value of American options at an early exercise date assuming the underlying asset confers a price forming a flat boundary, and confers a constant dividend yield, continuous dividends, or discrete dividends exclusive to certain distinct periods in time. Bjerksund-Stensland derives the time to maturity from two periods, the some of which constitutes the total duration with both periods forming a flat boundary.
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