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Consider the following information: The price of a 6-month maturity European put option is $2.70. The put strike price is $55. The current stock price
Consider the following information: The price of a 6-month maturity European put option is $2.70. The put strike price is $55. The current stock price is $60. Dividends received 2 months from today and 8 months from today are projected to be $1.20 and $1.40, respectively. The risk-free rate and are not provided (and hence, you must not make any assumptions regarding the values of these variables). The table below shows the current prices of zero-coupon bonds with different maturities but all are with a face value of $1: Maturity of zero-coupon bond 2 months 6 months 8 months Current fair price $0.9934 $0.9802 $0.9737 Required: Calculate the fair price of the corresponding 6-month European call stock option with the same strike price
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