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will cash dividend decrease value of European and American call options? which option (American or European's) size of value drop is bigger?

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter17: Multinational Capital Structure And Cost Of Capital

Section: Chapter Questions

Problem 31QA

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will cash dividend decrease value of European and American call options?

which option (American or European's) size of value drop is bigger?

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