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1.7. A dividend paying stock has price 50 . You are given: (i) The continuously compounded risk-free interest rate is 6%. (ii) A 6-month European
1.7. A dividend paying stock has price 50 . You are given: (i) The continuously compounded risk-free interest rate is 6%. (ii) A 6-month European call option on the stock with strike 50 costs 2.30. (iii) A 6-month European put option on the stock with strike 50 costs 1.30. Determine the present value of dividends paid over the next 6 months on the stock
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