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Today's price of XY Z stock is $52.00. You are given the following: (a) Dividends of equal amounts will be paid on August 8, 2020
Today's price of XY Z stock is $52.00. You are given the following:
(a) Dividends of equal amounts will be paid on August 8, 2020 and November 8,
2020.
(b) A European call option on the stock with strike price of $50.00 expiring in six
months sells for $4.50.
(c) A European put option on the stock with strike price of $50.00 expiring in six
months sells for $2.45.
(d) The continuously compounded risk-free interest rate is 6%.
Calculate the amount of each dividend.
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