The following quotes were observed for options on a given stock on November 1 of a given year. These are American calls except where indicated. Use the information to answer questions 7 through 20.
The stock price was 113.25. The risk-free rates were 7.30 percent (November) , 7.50 percent (December) and 7.62 percent (January) . The times to expiration were 0.0384 (November) , 0.1342 (December) , and 0.211 (January) . Assume no dividends unless indicated.
-Suppose the stock is about to go ex-dividend in one day.The dividend will be $4.00.Which of the following calls will you consider for exercise?
Definitions:
Medical Assistant
A healthcare professional who supports the work of physicians and other health professionals, usually in a clinic setting.
Vasovagal Syncope
Fainting occurs when your body overreacts to certain triggers, such as the sight of blood or extreme emotional distress.
Emotional Distress
A highly unpleasant emotional response (e.g., sadness, anxiety, frustration) resulting from physical or psychological harm.
Sterile Cups/Basins
Containers used in medical settings for holding liquids and objects, which are sterilized to prevent contamination.
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