Chapter 6 - Question 4 Show that the value of a European call option on an asset that pays a constant continuous dividend yield lies
Chapter 6 - Question 4
Show that the value of a European call option on an asset that pays a constant continuous dividend yield lies below the payoff for large enough values of S. Show also that the call on an asset with dividends is less valuable than the call on an asset without dividends.
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Authors: Bruce Tuckman, Angel Serrat
3rd Edition
0470891696, 978-0470891698
