21 research outputs found
Experimental autoimmune encephalomyelitis relapses are reduced in heterozygous golli MBP knockout mice
Nitrogen partitioning and assimilation: methods for the extraction, separation and mass spectrometric analysis of nitrate, amino acid and soluble protein pools from individual plants following 15N labelling
On the Upper Bound of a Call Option
Using only a weak set of assumptions, Merton (1973) shows that the upper bound of a European or American call option on a non-dividend paying stock is the underlying stock price: a result which is often extended to options on dividend paying stocks. In this short technical piece we show that the underlying stock price is in fact not the least upper bound of either a European or an American call option on a stock that pays one or more known dividends prior to maturity. Based on Merton's (1973) original framework, new upper bounds are established which depend on the size(s) of the dividend(s) compared to the size of the strike. Copyright Springer Science + Business Media, Inc. 2005option, arbitrage, bounds,