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Use the Table for the Question(s)below

Question 23

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Use the table for the question(s) below.
Consider the following information on options from the CBOE for Merck: 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) $4.89 B) $2.35 C) $4.30 D) $20.19
-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) $4.89
B) $2.35
C) $4.30
D) $20.19

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