c. American callthe interest rate is 10%, and the dividend payment is 5% of future stock price.
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c. American call—the interest rate is 10%, and the dividend payment is 5% of future stock price. (Hint: The dividend depends on the stock price, which could either rise or fall.)
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Related Book For
Principles Of Corporate Finance
ISBN: 9781264080946
14th Edition
Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans
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