Compute if the dividend on the CD is 0, the initial price is $1300, and the

Question:

Compute λ if the on the CD is 0, the initial price is $1300, and the payoff is $1200 + λ × max(0, S5.5 − 1300).
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...