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Scruggs Inc. features in the FLATT500 stock index, which pays a continuous dividend yield of 1.2%, has a contract multiplier of $100 per full index
Scruggs Inc. features in the FLATT500 stock index, which pays a continuous dividend yield of 1.2%, has a contract multiplier of $100 per full index point and volatility of returns of 20% per annum. Calculate the price of a five-month at-the-money European style call option when the index is at 2,500 points and interpret your findings.
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