Two European calls on a stock have the same strike but different maturities, one with 6 months

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Two European calls on a stock have the same strike but different maturities, one with 6 months and the other with 9 months. If the 9-month call is lower there is no arbitrage opportunity.

Can we claim that the stock must pay dividends within 6 months?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

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Posted Date: Jul 05, 2023 01:56 AM

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Two European calls on a stock have the same strike but different maturities, one with 6 months

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No we cannot directly claim that the stock must pay dividends within 6 months based solely on the in... View the full answer

Income Tax Fundamentals 2013

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