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Question
Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $75.00, σ = 0.35, and r = 0.05. An American call option with a strike price of $80 would be exercised early at what dividend yield?A) 5.0%
B) 7.0%
C) 9.0%
D) Never exercise early
Answer
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Related questions
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