Question
Suppose the S&P 500 is at 885, and a one-year European call option with a strike price of $408 has a negative time value. If
Suppose the S&P 500 is at 885, and a one-year European call option with a strike price of $408 has a negative time value. If the interest rate is 4 %, what can you conclude about the dividend yield of the S&P 500? (Assume all dividends are paid at the end of the year.)
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Finance
Authors: Angelico Groppelli, Ehsan Nikbakht
7th Edition
1438010362, 9781438010366
