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Given: - Stock A will pay an unknown dividend at t = 1, and nodividends at = 2. - The price of stock A at
Given: - Stock A will pay an unknown dividend at t = 1, and nodividends at = 2. - The price of stock A at t = 0 is 100 - r0,1 =5% (annual rate with annual compounding) - r0,2 = 6% (annual ratewith 2 answers
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