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  3. you are given that: (i) the current price of a sto

You are given that: (i) The current price of a stock is 100; (ii) The...

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You are given that: (i) The current price of a stock is 100; (ii) The continuously compounded risk-free interest rate is 6%. (iii) A $2 dividend will be paid every quarter, with the first dividend occurring 2 months from now. (iv) You use a K-strike call option and a K-strike put option on the stock to create a syn- thetic six-month short forward. The initial investment is 5. Calculate K

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