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Parity with a dividend in the way · Part 2 of 3
European call and put options on a stock at $62 have a strike of $60 and six months to expiry. The riskless rate is 5% a year, continuously compounded, and the call trades at $5.10.
Now the stock will pay a $1.50 dividend in three months, and the call is still quoted at $5.10. What is the parity value of the put?
Answer with a number. Fractions, powers and expressions like 23/6 or C(52,5) are read correctly in practice.
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