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Problem 16-06 Suppose the current value of a popular stock index is 652.00 and the dividend yield on the index is 2.7%. Also, the yield
Problem 16-06 Suppose the current value of a popular stock index is 652.00 and the dividend yield on the index is 2.7%. Also, the yield curve is flat at a continuously compounded rate of 5.0%. three months. You may use Appendix D to answer the question. Do not round intermediate calculations. Round your answer to the nearest cent. $ b. If the actual market price of this option is $20.90, calculate the implied volatility coefficient. Do not round intermediate calculations. Round your answer to two decimal places. %
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