Current point of time t

0

Available capital V

$200,000

Target floor F

$195,000

Investment horizon T

2 years

Current stock price S0

$100

Continuously compounded annual interest r

0.10

Annual stock volatility σ

0.30

Dividends during time to maturity

Case 1: continuous dividends l

0.02

Case 2: dividends with present value L0

$10