Question: In excel: Consider a call option and put option on the same underlying stock with the same exercise price and time to maturity. The call
In excel: Consider a call option and put option on the same underlying stock with the same exercise price and time to maturity. The call price is $3, the underlying stock price is $30, the exercise price on both options is $26, the risk-free rate is 6%, the time to maturity on both options is 0.45 years, and the stock pays a $1.50 / share dividend in 0.27 years. Determine the price of the put price now. (I know how to plug these into the formula and find the answer, however I am unsure how to solve using excel functions when a dividend is involved.)
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