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Microsoft's stock price is now $40 per share. Microsoft will pay a $1 dividend in 4 months. Consider the following European options on Microsoft stock.
Microsoft's stock price is now $40 per share. Microsoft will pay a $1 dividend in 4 months. Consider the following European options on Microsoft stock. Note: Please type in numbers without the dollar signs. 1). Calculate the no-arbitrage price of 5-month put (K=35,T=5 months), implied by put-call parity. Round your answer to two decimal places [10 points] Microsoft's stock price is now $40 per share. Microsoft will pay a $1 dividend in 4 months. Consider the following European options on Microsoft stock. Note: Please type in numbers without the dollar signs. 1). Calculate the no-arbitrage price of 5-month put (K=35,T=5 months), implied by put-call parity. Round your answer to two decimal places [10 points]
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