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Consider a European call on a stock when there are ex dividend dates in four months and seven months The dividend on each ex dividend date is expected to be $2 50 The current stock price is

Consider a European call on a stock when there are ex-dividend dates in four months and seven months. The dividend on each ex-dividend date is expected to be $2.50. The current stock price is $50, the exercise price is $51, the volatility is 20% per annum, the continuously compounded riskfree interest rate is 12% per annum, and the time to expiration is nine months. Calculate the price of the call. Please and thank you!

 

Apr 11 2020 Read more Less More

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