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Suppose a stock is traded on the spot market today at a price of SEK 3 4 7 . 8 0 and that it is
Suppose a stock is traded on the spot market today at a price of SEK and that it is also traded both call and put options with the share as the underlying asset. The options have a maturity for year and a strike price of kr The call option is traded at a price of SEK The put option is traded at a price of SEK and the riskfree rate is Furthermore the stock is expected to pay dividends in year just before the options expire. Adjust PCP on
and calculate the amount of dividend the share is expected to pay per share. Suppose it doesn't arbitrage profit.
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