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1. In d part, why we have discounted the dividend and deducted it?
2. Also just for clarification the value of option which is 150.53 is the excess they will receive? it includes the intrinsic value value of 86.42(Pa-Pe) and rest is time value of money?
3. The value of put option which is 34.62 what does this mean?
Where are you finding this question? I ask because the original exam question does not have anything about options in it.
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