A european call option is written on a stock whose current


Question: A European call option is written on a stock whose current price S = 80. The exercise price X = 80, the interest rate r = 8%, and the time to option exercise T = 1. The stock is assumed to pay a dividend of 3 at time t = ½. Use Proposition 7 to determine the minimum price of the call option.

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Finance Basics: A european call option is written on a stock whose current
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