Suppose discrete dividends of amount D 1 ,D 2 , ,D n are paid at the
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Suppose discrete dividends of amount D1,D2, ··· ,Dn are paid at the respective ex-dividend dates t1,t2, ··· ,tn and let tn+1 denote the date of expiration T.
Show that the risky component is given by
Extend the result in (5.1.26).
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