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Amazon Inc. shares currently sell for 1,885 per share, the company pays no dividend. The 3-month American put option for Amazon with a strike price
Amazon Inc. shares currently sell for 1,885 per share, the company pays no dividend. The 3-month American put option for Amazon with a strike price of 1,790 sell for 118. Assume the risk-free rate, on a continuous compounded basis, is 1% per annum. All else being equal, if Amazon announced a surprise cash dividend, to be paid before the maturity of this option, you would expect the price of this put to:
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