The six-month continuously compounded rate of interest is 4%. The six-month forward price of stock KLM is
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The six-month continuously compounded rate of interest is 4%. The six-month forward price of stock KLM is 58. The stock pays no dividends. You are given that the price of a put option P(K) is $3. What is the maximum possible strike price K that is consistent with the absence of arbitrage?
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