1. For a 1-year American put option on a stock with 6 months left to expiry, you are given: (i) The strike price is 42. (ii) The continuous dividend rate for the stock is 0.03. (iii) 6 months before expiry, the stock price is 33. (iv) The value of a 6-month call option on the stock with a strike price of 42 is 0.155. Calculate the lowest possible continuously compounded risk-free rate so that exercising the option at 6 months before expiry is optimal. 1. For a 1-year American put option on a stock with 6 months left to expiry, you are given: (i) The strike price is 42. (ii) The continuous dividend rate for the stock is 0.03. (iii) 6 months before expiry, the stock price is 33. (iv) The value of a 6-month call option on the stock with a strike price of 42 is 0.155. Calculate the lowest possible continuously compounded risk-free rate so that exercising the option at 6 months before expiry is optimal