The price of a European call option on a stock with a strike price of £50.6 is £6.1. The stock price is £51.2, the continuously compounded risk-free rate (all maturities) is 5.2% and the time to maturity is one year. A dividend of £1.4 is expected in six months. What is the price of a one-year European put option on the stock with a strike price of £50.6?

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Calculating the Put Option Price using PutCall Parity We can utilize the wellknown PutCall Parity to ... View the full answer