Hi could you help me understand how to do the following question , my brain hurts
The current stock price of XYZ plc is £50. European put options on XYZ have an exercise price of £50, the risk free interest rate 10% per annum, the stock volatility is 30% per annum, maturity is three months. XYZ is expected to distribute a dividend of £1.50 in two months.
Calculate the price of the option using the Black-Scholes formula. Show enough calculations to show you understand how to apply the Black-Scholes formula. (Total 10 marks)