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What strike price will six-month maturity european call

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Reference no: EM132873310

Question 1: The price of a dividend paying stock is $40 and a dividend of $3 is due after 4 months. The continuously compounded interest rate is 12.42% per annum. For what strike price will 6-month maturity European call and put options have the same price?

Select one:

a. $39.00
b. $39.50
c. $40.00
d. $40.50
e. $41.00

Reference no: EM132873310

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