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Recalculate the value of the buffelhead call option

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Reference no: EM13213004

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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