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Let us say that the apple stock is selling at $52 on Jan 31, 2021. A dividend is due in 2 months on March 31,
Let us say that the apple stock is selling at $52 on Jan 31, 2021. A dividend is due in 2 months on March 31, 2021. An exact same amount is due as dividend in 5 months on June 30, 2021.A call option with a strike price of $50 and an expiry date of July 31 is selling at a price of $4.5 on Jan 31, 2021. A put option with the same strike price and the expiry date is selling at a price of $2.45 on Jan 31, 2021.
If the risk free rate is 6% per year, what is the amount that is due as dividend (individual dividends, not total) on March 31 and June 30?
- $0.9
- $1
- $0.6
- $0.8
- $0.7
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