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The following information is given about options on the stock of a certain company. So =23 X = 20 rc = 0.09 T=0.5 variability =

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The following information is given about options on the stock of a certain company. So =23 X = 20 rc = 0.09 T=0.5 variability = 0.15 No dividends are expected. If we now assume that the stock pays a dividend at a known constant rate of 3.5 percent, what stock price should we use in the model? (Due to differences in rounding your calculations may be slightly different. ?none of the above? should be selected only if your answer is different by more than 10 cents.). 22.60 19.65 23.00 21.99

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