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A stock is traded at $100 a share right before the ex-dividend date. If a dividend of $2 has been declared earlier, what is the
A stock is traded at $100 a share right before the ex-dividend date. If a dividend of $2 has been declared earlier, what is the share price at the end of the ex-dividend date, if the MM theorem is correct? If the share price does not drop at all (staying at $100) at the ex-dividend date, what actions could you take to reap free profits if such patterns persist? Assume no taxes of any kind
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