Problem #7: A stock's price is $43. The stock will pay a dividend of $7.47 after 3 months and $5.81 after 6 months. A European (3 mans) put option with a strike of $36 and an expiry date of 11 months has a premium of $7897. The continuously compounded risk-free rate is 8%. Determine the premium of a European call option on the stock with the same strike and expiry, answer correct to 2 decimals Problem 7 Save