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The premium of a European call option on a stock with a strike price of 40 kr is 7 kr. The stock price is 41
The premium of a European call option on a stock with a strike price of 40 kr is 7 kr. The stock price is 41 kr, the continuously compounded risk-free rate (all maturities) is 6% and the time to maturity is one year. A dividend of 1 kr is expected in six months. What is the premium of a one-year European put option on the stock with a strike price of 40 kr (Just write formuals, calculation and answer- dont need lot of text thank you)
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