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QUESTION 9 Suppose you are given the following information: stock price = 26, strike price = 25, u = 1.266, d = 0.756, n =

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QUESTION 9 Suppose you are given the following information: stock price = 26, strike price = 25, u = 1.266, d = 0.756, n = 2 (time steps),- 3.00% (per period), and pays $2 dividend at the end of the first period. Suppose the dividend goes down to $1, then the early exercise premium of the above American call option will be higher lower the same cannot be determined

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