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Consider a European call option on a stock. The stock price is $65, the time to maturity is 8 months, the risk-free interest rate is
Consider a European call option on a stock. The stock price is $65, the time to maturity is 8 months, the risk-free interest rate is 10% p.a., the strike is $70, and the volatility is 32%. A dividend of $1 will be paid after 3 months and again after 6 months. What is price of the option?
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