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Consider a stock index currently standing at 250. The dividend yied on the index is 4% per annum, and the risk free rate is 6%
Consider a stock index currently standing at 250. The dividend yied on the index is 4% per annum, and the risk free rate is 6% per annum. A three month European call option on the index with a strike price of 245 is currently worth $10. What is the value of a three month put option on the index with a strike price of 245?
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