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1. You are given the following information: The current price to buy one share of a stock is 200. a The continuously compounded risk-free rate

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1. You are given the following information: The current price to buy one share of a stock is 200. a The continuously compounded risk-free rate is 6%. A European call option on one share of the stock with strike K that expires in one year costs 16.21. A European put option on one share of the stock with strike K that expires in one year costs 10.21. (a) If the stock does not pay dividends, determine the strike price K. (b) If the stock pays a single dividend of 16.49 per share at the end of 6 months, determine the strike price K

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