Question
Please use the following information: -A stock has a current share price of $100 and is set to pay a per share dividend of $20
Please use the following information: -A stock has a current share price of $100 and is set to pay a per share dividend of $20 just before T=2 -U=1.221 and D=0.819 -The risk-free rate is 10%. -All options expire in two years. -All options are at-the-money, i.e. K=S(0) -Use a two-step binomial model. What is the American call price?
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Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo
6th Global Edition
1292446315, 978-1292446318
