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Consider a three-year European call option with the strike price of $150. The underlying stock will pay $10-dividend two years later from now. The current
Consider a three-year European call option with the strike price of $150. The underlying stock will pay $10-dividend two years later from now. The current stock price is $170. The risk-free rate is 3% per annum. Find the range of the call prices that do not allow any arbitrage.
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