Dr. Sato makes a fully leveraged purchase on a share of stock today at time t = 0. You are given: The time t = 0 price of a share of the stock is 50. The stock pays a discrete dividend of 1.50 in six months. The continuously compounded annual risk-free interest rate is 2%. The broker's commission is 0.2% on each and every transaction. Continuously compounded interest should be used in all computations for this problem.
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