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The price of a European call that expires in six months and has a strike price of $31is $2. The underlying stock price is $29,
The price of a European call that expires in six months and has a strike price of $31is $2. The underlying stock price is $29, and a dividend of $1 is expected in two months and again in five months. The term structure is flat, with all risk-free interest rates being 10%. What is the price of a European put option that expires in six months and has a strike price of $31.
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