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QUESTION 10 Suppose you are given the following information: stock price = 26, strike price = 25, u = 1.266, d0.756, n = 2 (time

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QUESTION 10 Suppose you are given the following information: stock price = 26, strike price = 25, u = 1.266, d0.756, n = 2 (time steps), r = 3.00% (per period), and pays NO dividend at the end o decides to pay a $1 dividend. What will happen to the early exercise premium of the above American call option: It will be higher It will be lower It will stay the same Cannot be determined. Click Save and Submit to save and submit. Click Save All Answers to save all answers

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