Page 1 of 1
11.16. A 4-month European call option on a dividend-paying stock is currently selling for $5. The stock price is $64, th
Posted: Sun May 29, 2022 4:24 pm
by answerhappygod
- 11 16 A 4 Month European Call Option On A Dividend Paying Stock Is Currently Selling For 5 The Stock Price Is 64 Th 1 (16.77 KiB) Viewed 69 times
11.16. A 4-month European call option on a dividend-paying stock is currently selling for $5. The stock price is $64, the strike price is $60, and a dividend of $0.80 is expected in 1 month. The risk-free interest rate is 12% per annum for all maturities. What opportun- ities are there for an arbitrageur?