Consider a two-period binomial model, where each period is 6 months. Assume the stock price is $46.00, ? = 0.28, r = 0.06 and the dividend yield is 2.0%

What is the maximum approximate strike price where early exercise would occur with an American call option?
A) $29
B) $33
C) $42
D) $46


A

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Indicate whether the statement is true or false

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