ABC stock is trading at ($ 100), its annualized standard deviation is (sigma^{mathrm{A}}=0.3), its mean is zero,
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ABC stock is trading at \(\$ 100\), its annualized standard deviation is \(\sigma^{\mathrm{A}}=0.3\), its mean is zero, and its continuous annual dividend yield is \(2.5 \%\). The annual risk-free rate is \(2.5 \%\). Determine the equilibrium prices of \(\mathrm{ABC}\) American and European 100 call and put options expiring in 180 days using the BOPM Excel program. Also determine the prices of the options for the following number of subperiods: \(n=5,10,20\), and 100 .
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