For a stock, you are given: i) The current stock price is 50 ii) At the end of three months the stock price will either be 45 or 55 iii) The stock pays dividends at the rate proportional to its price. The dividend yield is 4% iv) The continuously compounded risk-free interest rate is 0.03 Consider a 3-month 53-strike European put on the stock. Find A for the put option

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.