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The current price of a stock is $50, and the continuously compounded risk-free rate is 5%. The stock pays a continuous dividend yield of 1%.
The current price of a stock is $50, and the continuously compounded risk-free rate is 5%. The stock pays a continuous dividend yield of 1%. A European call option with a exercise price of $45 and 6 months until expiration has a current value of $7.55. What is the value of a European put option written on the stock with the same exercise price and expiration date as the call?
Answer $1.69
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