(Mark Value = 3)

2. Suppose that stock X is currently priced at 40 per share and the company has announced that it is going to pay a dividend of 0.3 per share after 1 months. You purchase 100 shares of stock X and invest all dividends received at a continuously compounded risk-free interest rate of 5%. After 3 months, you sell the stock when the stock price is 45.4.

Calculate the 3-month profit.

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