A call option on ibm has an exercise price of 100 the share, Ask an Expert

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A call option on IBM has an exercise price of 100, the share price S is 120. The option will expire in 6 months, and the riskfree rate is 10Yo p.a. and the historical variance of the returns of IBM is I2Yo p.a. Before the option expires, IBM is expected to pay 2 rcgular dividends of $2 per share at the end of the second month and the fifth month. please determine the price of this IBM call option if it can be exercised prior to maturity.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91825565

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