Consider a european call on a stock when there are, Ask an Expert

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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 $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.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92265753

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