2. A stock currently sells for $32.00. A 6-month call option with a strike of $30.00 has...

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2. A stock currently sells for $32.00. A 6-month call option with a strike of $30.00 has a premium of $4.29, and a 6-month put with the same strike has a premium of $2.64.

Assume a 4% continuously compounded risk-free rate. What is the present value of dividends payable over the next 6 months?

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Derivatives Markets Pearson New International Edition

ISBN: 978-1292021256

3rd Edition

Authors: Robert L. Mcdonald

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Question Posted: Jul 22, 2024 06:04 AM

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2. A stock currently sells for $32.00. A 6-month call option with a strike of $30.00 has...

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Derivatives Markets Pearson New International Edition

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