The price of a one-year European call option on a dividend-paying stock with a strike...
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The price of a one-year European call option on a dividend-paying stock with a strike price of 70 kr is 7 kr. The stock price is 71 kr, a dividend of 7 kr will be paid out in six months, the continuously compounded risk-free rate for all maturities is 7%.
What is the price of a one-year European put option on the stock with a strike price of 70 kr?
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