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A Dividend Paying Stock Is Currently Selling for $96

Question 39

Multiple Choice

A dividend paying stock is currently selling for $96. The price of a $95 strike call with a 3 month expiration is selling for $2.15. If the interest rate is 3%, what is the price of the put option assuming a dividend is paid in 3 months and is $0.80?


A) $4.41
B) $3.23
C) $2.36
D) $1.24
E) None of the options.

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