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Consider a European put option on a stock. The option expires in 8 months and the exercise price is $40 per share. Suppose the stock

Consider a European put option on a stock. The option expires in 8 months and the exercise price is $40 per share. Suppose the stock pays a $0.78 dividend per share in 4 months. The interest rate for continuous compounding is 3.16%.

To rule out arbitrage, what is the upper bound on the put option's price per share?

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