Question: EURO OPTION/BLACK-SCHOLES PUT (N(-d)) WITH DIVIDENDS Problem 7 * Intro The current price of a non-dividend-paying stock is $233 and the annual standard deviation of

EURO OPTION/BLACK-SCHOLES PUT (N(-d)) WITH DIVIDENDS

Problem 7 * Intro The current price of a non-dividend-paying stock is $233 and the annual standard deviation of the rate of return on the stock is 41%. A European put option on the stock has a strike price of $250 and expires in 0.4 years. The risk-free rate is 6% (continuously compounded). Part 1 IB- Attempt 2/8 for 10 pts. What should be the price (premium) of the put option? 0+ decimals Submit Part 2 Jo Attempt 1/8 for 10 pts Now assume that the stock is expected to pay a dividend of $2.02 in 2 months 0+ damals Submit

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