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The price of a European call which expires in 6 months and has a strike price of $30 is $2.00. The underlying stock's price is
The price of a European call which expires in 6 months and has a strike price of $30 is $2.00. The underlying stock's price is $29 and a dividend of $.50 is expected in 2 months and in 5 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 6 months and has a strike price of $30? (Hint adjust the put call parity for dividends).
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