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(d) The following stock follows the Black-Scholes framework. () Current price is $45 (ii) Pays continuous dividends of 2% per annum (iii) Volatility is 30%

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(d) The following stock follows the Black-Scholes framework. () Current price is $45 (ii) Pays continuous dividends of 2% per annum (iii) Volatility is 30% per annum (iv) R-E-Ris 5% papc Determine the premium for a 3-month EPO on a 1-year futures contract on the stock with strike price $50

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