Question: 26. When there are two dividends on a stock, Black's approximation sets the value of an American call option equal to which of the following?

26.

When there are two dividends on a stock, Black's approximation sets the value of an American call option equal to which of the following? a. The value of a European option maturing just before the first dividend O b. The higher of the following two values: 1) the value of a European option maturing just before the second (final) dividend and 2) the value of a European option assuming no early exercise Oc. The value of a European option maturing just before the second (final) dividend

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