The price of a european call that expires in seven months


Question: The price of a European call that expires in seven months and has a strike price of $62 is $3.15. The underlying stock price is $59.50, and a dividend of $0.64 is expected in two months and again in five months. The term structure of interest rates is stable, with all risk-free interest rates being 8.875%. Calculate the market price of a European put option that expires in seven months and has a strike price of $62?

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Finance Basics: The price of a european call that expires in seven months
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