An index currently stands at 1,500. European call and put options with a strike price of

Chapter 17, Problem 17.18

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An index currently stands at 1,500. European call and put options with a strike price of 1,400 and time to maturity of six months have market prices of 154.00 and 34.25, respectively. The six-month risk-free rate is 5%. What is the implied dividend yield?

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