Suppose the S&P 500 is at 2700, and a one-year European call option with a strike price

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Suppose the S&P 500 is at 2700, and a one-year European call option with a strike price of

$1200 has a negative time value. If the interest rate is 5%, what can you conclude about the dividend yield of the S&P 500? (Assume all dividends are paid at the end of the year.)

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Corporate Finance

ISBN: 9780137845071

6th Edition

Authors: Jonathan Berk, Peter DeMarzo

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Question Posted: Jun 12, 2024 01:15 AM

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Suppose the S&P 500 is at 2700, and a one-year European call option with a strike price

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Corporate Finance

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