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The six month continuously compounded rate of interest is 4 % . The six - month forward price of stock KLM is 5 8 .

The six month continuously compounded rate of interest is 4%. The six-month forward price of stock KLM is 58. The stock pays no dividends. You are given that the price of a put option P ( K ) is $3. What is the maximum possible strike price K that is consistent with the absence of arbitrage?

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