Suppose in Any Period a Share Dividend Takes One of Four

Multiple Choice

Suppose in any period a share dividend takes one of four values: $0.00, $0.08, $0.28 or $0.60 with equal probability. The asset trades for 15 periods and then become valueless. Period 9 has ended and Period 10 has just begun. There are a number of offers to sell that you could consider. Which of the following statements is true?

A) You should not consider buying this share at any price higher than $1.44 unless you are certain to make a speculative gain on the share.
B) You should not consider buying this share at any price lower than $1.44.
C) You should consider buying this share at any price since there are plenty of periods left and you will almost certainly find another trader willing to pay a higher price.
D) You should not consider buying this share regardless of the sale price.