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Problem #15: The stock price 5 months from the expiration of a European option is $74, the exercise price of the option is [2 marks]

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Problem #15: The stock price 5 months from the expiration of a European option is $74, the exercise price of the option is [2 marks] $97, the dividend yield is 3% per annum, the risk-free interest rate is 18% per annum, and the volatility is 37% per annum. Use the Black-Scholes-Merton formula to find the price of this put option. (A) 21.95 (B) 20.95 (C) 18.95 (D) 19.95 (E) 22.95

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