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Problem 1(5pt). The current price of Humana stock is $484. Consider a European call option and a European put option on Humana stock with a
Problem 1(5pt). The current price of Humana stock is $484. Consider a European call option and a European put option on Humana stock with a strike price of $490 and a time to maturity of 6 months. The call option currently sells for $3.5 more than the put option. The company is supposed to pay a dividend of $3 in 6 months from now right before the expiration of the options. Calculate the continuously compounded risk-free interest rate
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