Derivatives Topic Test Question

CFA Level II Derivatives
#1

Can anyone help me with the 2nd question on Derivatives Topic test #5

The share price is asked using the put call parity equation and i dont understand from where the PV of dividends has been deducted from the stock. Can anyone help me how they came with the dividend no.

Thanks!

#2

The PV of dividends deducted is 2.96. It is calculated as below

The formula for quarterly discount factor using 2% annual interest rate is

1.02^Q/360

So first quarter is 1.02^90/360

Winters. Name of the topic test is Winters :slight_smile:

#3

oh i missed that part. thank you!