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A call option has a premium of $0.60, a strike price of $40, and 3 months to expiration. The current stock price is $39.60. The

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A call option has a premium of $0.60, a strike price of $40, and 3 months to expiration. The current stock price is $39.60. The stock will pay a $0.80 dividend two months from now. The risk-free rate is 3 percent. What is the premium on a 3-month put with a strike price of $40? Assume the options are European style. 7 A B 1 8 Maximum file size: 200MB, maximum number of files: 3

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