Question: Question 8 1 pts Assume the Black-Scholes framework. The current price of a stock is 115. The stock pays dividends continuously at a rate of

Question 8 1 pts Assume the Black-Scholes framework. The current price

Question 8 1 pts Assume the Black-Scholes framework. The current price of a stock is 115. The stock pays dividends continuously at a rate of 1% and has an expected annual return of 6%. The continuously- compounded risk-free rate of interest is 2%. The price of a 3-year, K-strike European call on this stock is 30.14. The price of a 3-year, K-strike European put on this stock is 45.68. You are given that Nd)=2.0837. N(dy). Find the volatility of the stock. 46.64% 44.03% 38.80% O 36.19% 41.42%

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