Calculate the price of a four-month european put option on, Ask an Expert

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Calculate the price of a four-month European put option on a non-dividend-paying stock with a strike price of $60 when the current stock price is $55, the continuously compounded risk-free interest rate is 10% per annum, and the volatility is 31% per annum. Calculate the price of the put option if a dividend of $2.50 is expected in three months.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92422044

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