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Recalculate the value of the buffelhead call option

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Recalculate the value of the Buffelhead call option (see question 5), assuming that the option is American and that at the end of the first six months the company pays a dividend of $25. (Thus the price at the end of the year is either double or half the ex-dividend price in month 6.) How would your answer change if the option were European?

Reference no: EM13213004

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