The price of a european put option that expires in 1 year


The price of a European put option that expires in 1 year and has a strike price of $30 is $3.25. The underlying stock price is $28, and a dividend of $0.40 is expected in 1 month, 5 months and 9 months. The term structure is flat, with all risk-free interest rates being 6%. What is the price of a European call option on the same underlying stock that expires in 1 year and has a strike price of $30?

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Financial Management: The price of a european put option that expires in 1 year
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