4. Sureshot stock is currently trading at $80. Analysts are assuming that u=.1 and d=.0909....
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4. Sureshot stock is currently trading at $80. Analysts are assuming that u=.1 and d=.0909. Sureshot expects to distribute a dividend of $2 at time 1. Thel periodic risk-free rate is 10%. a) Using the two period BOPM compute C(80,2,80) b) Would it ever pay to exercise this option early? If so, when, and why
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