10.Present Value of dividend=1*.971=0.971Present Value of Stock=51-.971=50.03Price of Stock After 1 Year=50.03*(1+6%)=53.03Exercise Price=50Price of European Put Option=Max(0, 50-53.03)=$ 0 Solution 10.Present Value of dividend=1*.971=0.971Present Value of Stock=51-.971=50.03Price of Stock After 1 Year=50.03*(1+6%)=53.03Exercise Price=50Price of European Put Option=Max(0, 50-53.03)=$ 0.