Question: Multiple Choice. (10 marks). la. (2 marks) Using a binomial pricing model, what is the impact on the price of a call option if the

 Multiple Choice. (10 marks). la. (2 marks) Using a binomial pricing

Multiple Choice. (10 marks). la. (2 marks) Using a binomial pricing model, what is the impact on the price of a call option if the company increases the dividend paid to shareholders? The call option price: A. Will drop B. Will increase C. Will remain constant D. Impact cannot be determined

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