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Basic Question 2 of 9
The effect of dividends on a stock with an American call is to ______.
B. have no effect on early exercise
C. make early exercise more likely
A. make early exercise less likely
B. have no effect on early exercise
C. make early exercise more likely
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Learning Outcome Statements
calculate and interpret the value of an interest rate option using a two-period binomial model;
CFA® 2026 Level II Curriculum, Volume 5, Module 32.