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Suppose Geelong Ltd. stock is currently trading at $25 per share. A call option, which still has one-year to expiration, with an exercise price of
Suppose Geelong Ltd. stock is currently trading at $25 per share. A call option, which still has one-year to expiration, with an exercise price of $18 is currently trading at $4 and a put option with the same exercise price and expiration date on the same stock sells for $0.5. Assume that the risk-free rate is 5%. Geelong's expected dividend per share is closest to:
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