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(i) The length of each period is one year. (ii) The current stock price is $100. (iii) The stocks volatility is 35%. (iv) The stock

(i) The length of each period is one year. (ii) The current stock price is $100. (iii) The stocks volatility is 35%. (iv) The stock pays dividends continuously at a rate proportional to its price. The dividend yield is 5%. (v) The continuously compounded risk-free interest rate is 10%. A one-year European call option on the stock has a strike price of $90. The continuously compounded expected rate of return on the call option is 20.5%. Determine the continuously compounded expected rate of return on the stock:

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