Consider a stock index currently standing at 250. The dividend yield on the index is 4% per

Question:

Consider a stock index currently standing at 250. The yield on the index is 4% per annum, and the risk-free rate is 6% per annum. A three-month European call option on the index with a of 245 is currently worth $10. What is the value of a three-month put option on the index with a of 245? Strike Price
In finance, the strike price of an option is the fixed price at which the owner of the option can buy, or sell, the underlying security or commodity. 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...