Find the expected dividend

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XYZ common stock currently trades for $100/share and is expected to pay a dividend over the next three months. 3-month European call options on the stock have a strike price of $98 and a premium of $3.25. 3-month European put options that have an exercise price of $98 sell for $2.2. The annual risk-free rate is 5%. Find the expected dividend. Round intermediate steps to four decimals and your final answer to two decimals.

Reference no: EM132366802

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