Exercise 6 (5 points) Suppose we are in the the Black Scholes model. For a six months European put Option on a stock, you are given: i) Stock price is 45 and the strike price is K = 44. iii) The continuous dividend rate for the stock is 3% and the annual volatility is 10%. iv) The continuously compounded interest rate is 4%. Give the formula for the price of the put option and compute the premium. Solution