Xyz corp will pay a 2 per share dividend in 2 months its, Ask an Expert

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XYZ Corp. will pay a $2 per share dividend in 2 months. Its stock price currently is $78 per share. A call option on XYZ has an exercise price of $72 and 3-month time to expiration. The risk-free interest rate is 0.8% per month, and the stock's volatility (standard deviation) = 17% per month. Find the pseudo-American option value.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92085663

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