Question
ABC Inc. plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. ABCs share price today is
ABC Inc. plans to pay a $1.10 dividend per share in 3 months and a $1.15 dividend in 6 months. ABCs share price today is $45.60 and the continuously compounded quarterly interest rate is 2.1%. What is the adjusted stock price in the Black-Scholes model for option valuation?
_____
$41.55
$42.35
$43.42
$46.78
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Technical Analysis Of Stock Trends
Authors: Robert D. Edwards, John Magee, W.H.C. Bassetti
10th Edition
1439898189, 978-1439898185
