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elf_fu elf_fu
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6 years ago
Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $50.00, σ = 0.20, r = 0.06 and the dividend yield = 3.5%. What is the lowest strike price where early exercise would occur with an American put option?
A) $50
B) $55
C) $60
D) $65
Textbook 
Derivatives Markets

Derivatives Markets


Edition: 3rd
Author:
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phuongha2892phuongha2892
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6 years ago
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elf_fu Author
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6 years ago
Just got PERFECT on my quiz
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This helped my grade so much Perfect
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Thanks
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