Early exercise of the call option is optimal

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The stock of Harford Inc. is about to pay a $0.28 dividend. It will pay no more dividends for the next month. Consider call options that expire in one month. If the interest rate is 5% APR? (monthly compounding), what is the maximum strike price where it could be possible that early exercise of the call option is optimal?

Reference no: EM131904101

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