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For a 3-month 52-strike European options on a stock, you are given: i) The stock's...

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For a 3-month 52-strike European options on a stock, you are given: i) The stock's price follows the Black-Scholes framework. ii) The stock's price is 50. iii) The stocks volatility is 0.4. iv) The stock's continuous dividend rate is 4%. v) The continuously compounded risk-free interest rate is 8%. Using the Black-Scholes formula, calculate the premiums for call and put options, and then verify the put-call parity

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