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6. Consider European call and put options on a stock. The stock price is $50, the time to maturity is ten months, the risk-free rate
6. Consider European call and put options on a stock. The stock price is $50, the time to maturity is ten months, the risk-free rate of interest is 8% per year (with continuous compounding), the exercise price is $45, and the volatility is 40%. A dividend of $0.75 is expected after three months, after six months, and again after nine months. Calculate the price of the call option and put option.
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