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1. (6 points) A stock has price $100. Dividends of $5 are payable at the end of the 2nd and the 3rd month. You are
1. (6 points) A stock has price $100. Dividends of $5 are payable at the end of the 2nd and the 3rd month. You are given (a) The annual continuously compounded risk-free rate is 8%. (b) A 3-month European put option with strike $90 costs $12. Determine the premium of a 3-month European call option on the stock with strike $90
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