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1. Find the continuous dividend payout rate if the stock price is $40, the risk free interest rate is 4% annualized, a three month
1. Find the continuous dividend payout rate if the stock price is $40, the risk free interest rate is 4% annualized, a three month European call option with strike price $40 costs $4.10 and a corresponding European put option costs $3.91.
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To find the continuous dividend payout rate we can use the putcall parity formul...
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Investments
Authors: Zvi Bodie, Alex Kane, Alan J. Marcus
9th Edition
73530700, 978-0073530703
