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You come across a European call that has 6 months to expiration and has an expiration price of $30 which is priced at $2 by the market. The stock is currently selling for $29 and has expected dividends of $0.50 in two months and the same again in five months. Interest rates have a flat term structure at 10%. Calculate the price of a European put option with a six-month expiration and a strike price of $30.

Financial Management, Finance

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