3. A European call option is written on a stock whose current price S = 80. The...
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3. A European call option is written on a stock whose current price S = 80. The exercise price is X = 80, the interest rate is r = 8 percent, and the time to option exercise is T = 1. The stock is assumed to pay a dividend of 3 at time t = 1/2. Use Proposition 7 to determine the minimum price of the call option.
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