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3. Assume that a stock is trading at $100, and that it will pay a single cash dividend of $2 exactly one month from now.
3. Assume that a stock is trading at $100, and that it will pay a single cash dividend of $2 exactly one month from now. Interest rate = 1.5%. Calculate the 3-month forward price. If the 3-month put with strike K=$100 is worth $2. What would be the value of the call with the same strike?
3. Assume that a stock is trading at $100, and that it will pay a single cash dividend of $2 exactly one month from now. Interest rate = 1.5%. Calculate the 3-month forward price. If the 3-month put with strike K=$100 is worth $2. What would be the value of the call with the same strikeStep by Step Solution
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