Question: please show all steps without using Excel 7. For a stock, you are given: (i) The stock's price is 40. (ii) The stock's continuous dividend

please show all steps without using Excel

7. For a stock, you are given: (i) The stock's price is 40. (ii) The stock's continuous dividend rate is 0.02. (iii) A one-year 35-strike European call option has premium 10. (iv)A one-year 45-strike European call option has premium 2. (v) The continuously compounded risk-free interest rate is 0.05. Determine the lowest and highest arbitrage-free Premiums for a 1-year 40-strike Euro- pean put option the stock. 7. For a stock, you are given: (i) The stock's price is 40. (ii) The stock's continuous dividend rate is 0.02. (iii) A one-year 35-strike European call option has premium 10. (iv)A one-year 45-strike European call option has premium 2. (v) The continuously compounded risk-free interest rate is 0.05. Determine the lowest and highest arbitrage-free Premiums for a 1-year 40-strike Euro- pean put option the stock

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