Suppose a stock is at $23. Interest rates are at 9%. The stock pays a dividend at
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Suppose a stock is at $23. Interest rates are at 9%. The stock pays a dividend at a known constant rate of 3.5 percent. What stock price should we use in the Black-Scholes-Merton model for a call that expires in 4 months?
Related Book For
Foundations of Financial Management
ISBN: 978-1259024979
10th Canadian edition
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
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