Multiple Choice
Use the table for the question(s) below.
Consider the following information on options from the CBOE for Merck:
-Assume it is now January of 2007 and the current risk-free interest rate is 1%.Using Put-Call Parity and the January 30 option (ask price) ,estimate the relative contribution of the near-term dividends to the value of Merck's stock.
A) $0.54
B) $2.35
C) $4.30
D) $20.19
Correct Answer:

Verified
Correct Answer:
Verified
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