Multiple Choice
A dividend paying stock is currently selling for $47. The price of a $50 strike call with a 6 month expiration is selling for $2.20. If the interest rate is 4%, what is the price of the put option assuming a dividend is paid in 6 months and is $1.20?
A) $5.41
B) $4.23
C) $3.36
D) $2.26
E) None of the options.
Correct Answer:
Verified
Correct Answer:
Verified
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