What must be the price of a 1-year at-the-money european, Finance Basics

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What must be the price of a 1-year at-the-money european

Assume a stock has a value of $100. The stock is expected to pay a dividend of $2 per share at year-end. An at-the-money European-style option with one-year maturity sales for $7. If the annual interest rate is 5%, what must be the price of a 1-year at-the-money European style option on the stock?

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