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European option on a dividend paying stock, limits to arbitrage?
What is the price C of a European call option on a dividend paying stock? I believe it is: C = U. N(d1) - exp(-rt).K.N(d2) d1 = [ ln(U/K) + (r + v^2/2).t ]/[ v.sqrt(t) ] d2 = d1 - v.sqrt(t) U ...
Nov 8 at 22:51
quis est ille
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