Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $75.00,
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Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $75.00, = 0.35, and r = 0.05. An American call option with a strike price of $80 would be exercised early at what dividend yield?'
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To determine the early exercise of an American call option in a twoperiod binomial model we need to ... View the full answer
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