Call option on dividend-paying stock with strike price

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Reference no: EM131078205

Calculate the price of a 4-month European call option on a dividend-paying stock with a strike price of $30 when the current stock price is $32, the risk-free rate is 6% per annum and the volatility is 40% per annum. A dividend of $2.00 is expected in 2 months. Use Black-Scholes formula.

Reference no: EM131078205

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Call option on dividend-paying stock with strike price : Calculate the price of a 4-month European call option on a dividend-paying stock with a strike price of $30 when the current stock price is $32, the risk-free rate is 6% per annum and the volatility is 40% per annum. A dividend of $2.00 is expected i..

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