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A 2 year European call and a 2 year European put on a dividend paying stock are traded at $19.05 and $16.95 respectively. Both options
A 2 year European call and a 2 year European put on a dividend paying stock are traded at $19.05 and $16.95 respectively. Both options have the same strike $102. The risk free interest rate (continuous compounding) is 6% flat. Current stock price is $100 with 4% continuous dividend yield. Assume frictionless market and all dividends are reinvested back into stock
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