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A company's stock currently sells for $131.55. A one-year European put option on that stock with strike price of $140 sells for $22.1, and the
A company's stock currently sells for $131.55. A one-year European put option on that stock with strike price of $140 sells for $22.1, and the risk free interest rate is 1.07%. The market expects the company to pay dividends during that period, and the market consensus is that present value of those dividends is $3.52. The price of a one-year European call option on that stock with strike price of $140 is $ (Note i: answer must be accurate to the nearest cent). (Note ii. Use annual compounding NOT exponential compounding for the purpose of this question)
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