An index currently stands at 1,500 European call and put options with a strike price of 1,400 and time to maturity of six months have market prices of 154 00 and 34 25, respectively The six month risk free rate is 5 What is the implied dividend yield ...

An index currently stands at 1,500. European call and put options with a strike price of 1,400

Question:

An index currently stands at 1,500. European call and put options with a of 1,400 and time to of six months have market prices of 154.00 and 34.25, respectively. The six-month risk-free rate is 5%.What is the implied yield? Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their... Maturity
Maturity is the date on which the life of a transaction or financial instrument ends, after which it must either be renewed, or it will cease to exist. The term is commonly used for deposits, foreign exchange spot, and forward transactions, interest...