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  3. Study Set
    Derivatives and Risk Management Study Set 2
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    Exam 5: Option Pricing Models: the Black-Scholes-Merton Model
  5. Question
    Since Dividends Could Trigger an Early Exercise of an American
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Since Dividends Could Trigger an Early Exercise of an American

Question 31

Question 31

True/False

Since dividends could trigger an early exercise of an American call,the Black-Scholes-Merton dividend adjustment will provide the correct price of an American call.

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