1. You are given: (1) The price of a stock is 35. (2) The stock pays continuous dividends proportional to its price at an annual rate of 0.04. (3) The continuously compounded risk free interest rate is 0.06. (4) A one-year American call option on the stock has a strike price of 32. (a) Determine the bound for this call option. 1) If the time-0 rice of this call 0 tion is 10 and the time-0 rice of an otherwise P P 1 P identical 2 -year American call option is 8. Is there any arbitrage opportunity? If yes, construct one; if no, provide a reason