A stock is projected to pay a dividend of 3 in 1 month a, Ask an Expert

Economics

A stock is projected to pay a dividend of $3 in 1 month. A three month at-the-money European put option on the stock has a premium that is $2.751 higher than the premium for a three-month-at-the-money European call option on the stock. The continuously compounded risk-free interest rate is 2.5%. Which of the following is closest to the current price of the stock?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91522287

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