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7. If a stock price is S just before a dividend D is paid, what is its value immediately after the payment? Suppose that a

7. If a stock price is S just before a dividend D is paid, what is its value immediately after the payment? Suppose that a stock pays dividends at discrete times, T0, T1,... , Tn. Show that it can be optimal to exercise an American call on such a stock prior to expiry.

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