Calculate the price of a 3 month european put option

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Reference no: EM131237534

What difference does it make to your calculations in Problem if a dividend of $1.50 is expected in 2 months?

Problem :
Calculate the price of a 3-month European put option on a non-dividend-paying stock with a strike price of $50 when the current stock price is $50, the risk-free interest rate is 10% per annum, and the volatility is 30% per annum.

Reference no: EM131237534

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