medium · Quantitative Finance
A stock currently trades at $100 and pays a continuous dividend yield of q = 3%. A 6-month European call struck at $100 is priced at $8.00. If the risk-free rate is r = 5%, calculate the fair price of the European put using put-call parity.
- $7.02
- $9.02
- $6.04
- $8.00
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