Suppose the S&P 500 is at 899, and a one-year European call option with a strike price

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Suppose the S&P 500 is at 899, and a one-year European call option with a strike price of $428 has a negative time value. If the interest rate is 6%, what can you conclude about the dividend yield of the S&P 500?

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Corporate Finance The Core

ISBN: 9781292158334

4th Global Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Feb 29, 2024 04:00 AM

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Suppose the S&P 500 is at 899, and a one-year European call option with a strike price

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Given that the European call option has a negative time value when the SP 500 is a...View the full answer

Corporate Finance The Core

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