Question
What is the price of an American call option that is expected to pay a dividend of $2 in three months with the following parameters?
What is the price of an American call option that is expected to pay a dividend of $2 in three months with the following parameters?
s0 = $40 d = $2 in 3 months k = $41 r = 10% sigma = 20% T = 0.5 years
(required precision 0.01 +/- 0.01)
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International Financial Management
Authors: Cheol S. Eun, Bruce G.Resnick
6th Edition
71316973, 978-0071316972, 78034655, 978-0078034657
