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Question
A company is forecasted to pay dividends of $0.90, $1.20, and $1.45 in 3, 6, and 9 months, respectively. Given interest rates of 5.5%, how much dollar impact will dividends have on option prices? (Assume a 9-month option.)A) $3.45
B) $3.90
C) $4.22
D) $4.50
Answer
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Related questions
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