In addition to the five factors discussed in the chapter, dividends also affect the price of an option. The Black-Scholes option pricing model with dividends is: C=SedtN(d1)EeRtN(d2)d1=[ln(S/E)+(Rd+2/2)t](t)d2=d1t All of the variables are the same as the Black-Scholes model without dividends except for the varlable d, which is the continuously compounded dividend yield on the stock. The put-call parity condition is altered when dividends are paid. The dividend-adjusted put-call parity formula is: Sedt+P=EeRt+C where d is the continuously compounded dividend yield. A stock is currently priced at $86 per share, the standard deviation of its return is 40 percent per year, and the risk-free rate is 5 percent per year, compounded continuously. What is the price of a put option with a strike price of $82 and a maturity of six months if the stock has a dividend yield of 3 percent per year? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)