The market price of a dividend-paying stock is 69 and the


The market price of a dividend-paying stock is $69 and the volatility is 35% per annum. Assume continuously compounded risk-free interest rate is 8% per annum. A dividend of $1 is expected after three months and again after six months. Using BSM model, what is the price of an 8-month European put option on this stock when the strike price is $70?

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Financial Management: The market price of a dividend-paying stock is 69 and the
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