A european call option on a stock that is epexted to pay, Ask an Expert

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A European call option on a stock that is epexted to pay two dividends during the life of the option: a $0.95 dividened in two months, and a $1.00 dividend in five months. The stock price is $37.50, the stike price is $40, the risk free rate is 4% per year, the volitility is 21% per year, and the time to maturity is seven months. Use the Black-Scholes model to calculate the value of this option.

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Financial Management, Finance

Category:- Financial Management
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