Find the price of the option

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Reference no: EM133062557

Consider a European put option on a stock. The stock price is $70, the time to maturity is 8 months, the risk-free rate of interest is 10% per annum, the exercise price is $65, and the volatility is 32%. A dividend of $1 is expected after 3 months and again after 6 months. Use Black-Scholes formula to find the price of the option.

Reference no: EM133062557

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