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A Dividend Paying Stock Is Currently Selling for $32

Question 17

Multiple Choice

A dividend paying stock is currently selling for $32. The price of a $30 strike call with a 6 month expiration is $3.10. If the interest rate is 3%, what is the price of the put option assuming the dividend is paid in 6 months and is $0.50?


A) $0.66
B) $1.15
C) $1.36
D) $1.56
E) None of the options.

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