Question: Assume that the stock in the previous problem is expected to pay dividends in 1.5 months. The expected dividend is 50 cents. Use Black-Scholes model.

Assume that the stock in the previous problem is expected to pay dividends in 1.5 months. The expected dividend is 50 cents. Use Black-Scholes model. What is the price of the option if it were a European call?

?: compare and contrast the sensitivity of each input parameter by considering both a positive and negative 10 percent adjustment to each parameter individually. How stable is this relationship/ordering? Why?

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