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Compute what is the price of a european put option

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Reference no: EM133004478

Problem 1: The price of a European call that expires in six months and has a strike price of $30 is  $2. The underlying stock price is $29, and a dividend of $0.50 is expected in two months and again in five months. The term structure is flat, with all risk-free interest rates being 10%. What is the price of a European put option that expires in six months and has a strike price of $30?

Reference no: EM133004478

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