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You are given: i) The current price of a stock is 60 ii) The stock will pay a dividend of 4 in six months iii)

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You are given: i) The current price of a stock is 60 ii) The stock will pay a dividend of 4 in six months iii) The price of a 1-year European put option on the stock is 1.8 less than that of an otherwise identical call iv) The continuously compounded risk-free rate is 5% Calculate the strike price of the options Possible Answers A 57.08 B 58.69 C 57.66 D 57.11 E 60.79

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