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The spot price of stock TD is $575. The prices of a call and a put on FD that have a strike price of $545
The spot price of stock TD is $575. The prices of a call and a put on FD that have a strike price of $545 and expire in 12 months are $38.8 and $5.41 respectively. TD will pay a $14.08 dividend in 3 months and another dividend in 6 months. The rf=5.82%. How much should the dividend that will be paid in 6 months be?
A) $ 10.74
B) $ 15.46
C) $ 2.1
D) $ 13.08
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