In this equation, dis(K) + P – PV(… Show more Consider the
In this equation, dis(K) + P – PV(… Show more Consider the following equation: C = S – K + dis(K) + P – PV(Div) In this equation, dis(K) + P – PV(Div) tells us A) the market value of the option. B) the time value of the option. C) the difference in the price of an American option over a European option because of dividend capture. D) the intrinsic value of the option • Show less
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