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4. A stock pays continuous dividend proportional to its price at rate 5. You are given that the stock price is RM140, The continuous compounded

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4. A stock pays continuous dividend proportional to its price at rate 5. You are given that the stock price is RM140, The continuous compounded risk-free interest rate is 8%, a 3 month European call and put option on the stock with strike RM140 costs each RM 3.10 and RM 1.91. Calculate the rate of dividend. (10 marks) 4. A stock pays continuous dividend proportional to its price at rate 5. You are given that the stock price is RM140, The continuous compounded risk-free interest rate is 8%, a 3 month European call and put option on the stock with strike RM140 costs each RM 3.10 and RM 1.91. Calculate the rate of dividend. (10 marks)

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