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XYZ Corp. will pay a $2 per share dividend in two months. Its stock price currently is $60 per share. A European call option on XYZ has an exercise price of $55 and 3-month time to expiration. The risk-free interest rate is 0.5% per month, and the stock's volatility (standard deviation) =7% per month. Find the Black-Scholes value of the American call option. (Hint. Try defining one "period" as a month, rather than as a year, and think about the net-of-dividend value of each share.) (Round your answer to 2 decimal places.) Answer is complete but not entirely correct. You are attempting to value a put option with an exercise price of $100 and one year to expiration. The underlying stock pays no dividends, its current price is $100, and you believe it has a 50% chance of increasing to $120 and a 50% chance of decreasing to $80. The risk-free rate of interest is 10%. a. What will be the payoff to the put, Pu, if the stock goes up? Answer is complete and correct. Payoff b. What will be the payoff, Pd, if the stock price falls? c. What is the weighted average value of the pay off? (Do not round intermediate calculations. Round your answer to 3 decimal places.) Answer is complete but not entirely correct