Question: Consider the information provided below and answer the following questions. In early April 2023, Macquarie Group is trading at $180.02 and you wish to purchase
Consider the information provided below and answer the following questions.
In early April 2023, Macquarie Group is trading at $180.02 and you wish to purchase an AMERICAN call on this stock with a strike price of $200 with 2 years to expiry.
At the end of the first year, the company is expected to pay a dividend of $6.02 per share.
At the end of the second year, the stock is expected to pay a dividend of $6.16.
The continuously compounded risk free rate is 3.6134% and the volatility of the stock is 48.50%.
Match the number that corresponds to the value required in the question
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