Business, 25.02.2020 23:54, itsyagirl11076

Assume that the price of a European call expiring in six-month with a strike price of $30 is $2. Suppose that the underlying stock price is $29, and a dividend of $0.50 is expected in two months and again in 5 months. The interest rate is the same for all periods and the risk-free rate is 10%. The price of a European put option that expires in six-month and has a strike price of $30 is:

a. $1.51
b. - 2.51
c. $2.51
d. $3.05

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Assume that the price of a European call expiring in six-month with a strike price of $30 is $2. Sup...