Suppose the S&P 500 is at 899, and it will pay a dividend of $27 at the
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Suppose the S&P 500 is at 899, and it will pay a dividend of $27 at the end of the year. Suppose also that the interest rate is 3%. If a one-year European put option has a negative time value, what is the lowest possible strike price it could have?
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Related Book For
Corporate Finance The Core
ISBN: 9781292158334
4th Global Edition
Authors: Jonathan Berk, Peter DeMarzo
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