Same as before, except we will value American options where the underlying stock pays dividends. At the
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Same as before, except we will value American options where the underlying stock pays dividends. At the close of trading on October 11, 2013, the stock price of Facebook (FB) was $49.11, the standard deviation of daily returns is 74.73%, the yield on a six-month U.S. Treasury Bill was 0.12%, the exercise price of an March 45 call on Facebook was $45.00, the exercise price of an March 45 put on Facebook was $45.00, and the time to maturity for both March 22, 2014 maturity options was 0.4472 years. Assume that Facebook pays certain, riskfree $1.00 dividends on the periods show below. What is the price of a March 45 call and a March 45 put on Facebook?
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