Consider an American call option on a stock. The stock price is $70, the time...
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Consider an American call option on a stock. The stock price is $70, the time to maturity is eight months, the risk-free rate of interest is 10% per annum, the exercise price is $65, and the volatility is 32%. A dividend of $1 is expected after three months and again after six months. What is the the price of the option based on the Black-Scholes-Merton Model?
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