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Stock |
$70.00 |
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Strike |
$65.00 |
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Riskfree rate |
10% |
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Time (T) |
0.6667 |
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Dividend (D1) |
$1.00 |
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Time (t1) |
0.25 |
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Dividend (D2) |
$1.00 |
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Time (t2) |
0.50 |
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T-t2 |
0.167 |
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t2-t1 |
0.250 |
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K @ t2 |
$1.07 |
Greater than $1 (D2), so not optimal |
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K @ t1 |
$1.60 |
Greater than $1 (D1), so not optimal |
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