A stockrsquos current price is 45 dividends of 2 are


A stock’s current price is 45. Dividends of 2 are payable quarterly, with the next dividend payable at the end of the first month. You are given:

(i) The continuously compounded risk-free interest rate is 6%.

(ii) A 3-month European put option with strike 50 costs 7.32.

 

Determine the premium of a 3-month European call option on the stock with strike 50.

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Financial Management: A stockrsquos current price is 45 dividends of 2 are
Reference No:- TGS01417204

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