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2. A stock has market price $45 and pays a $2 dividend quarterly. The next dividend is payable one month from now. The risk
2. A stock has market price $45 and pays a $2 dividend quarterly. The next dividend is payable one month from now. The risk free interest rate is 6%. Three month European options with strike price K = $50 are considered. The put option costs $7.32, What is the cost of the call option?
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Authors: Ambrose Lo
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0367734214, 978-0367734213
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