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Consider a put option on a dividend-paying stock when the stock price is $51, the exercise price is $53, the risk-free interest rate is 12%

Consider a put option on a dividend-paying stock when the stock price is $51, the exercise price is $53, the risk-free interest rate is 12% per annum, the volatility is 25% per annum, and the time to maturity is five months. The stock is due to go ex-dividend in 3 months. The expected dividend is 200 cents. Calculate the option price. Answer to 3 dps.

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