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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Principles Of Corporate Finance

ISBN: 9781264080946

14th Edition

Authors: Richard Brealey, Stewart Myers, Franklin Allen, Alex Edmans

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