Assume that the stock in Problem 13.29 is due to go ex-dividend in 1 months. The expected

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Assume that the stock in Problem 13.29 is due to go ex-dividend in 1 months. The expected dividend is 50 cents.

(a) What is the price of the option if it is a European call?

(b) What is the price of the option if it is a European put?

(c) If the option is an American call, are there any circumstances under which it will be exercised early?

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