11. A stock's price follows a lognormal model. You are given: The stock's current price is 38. The stock's continuously compounded expected rate of return is 0.14. The stock's continuously compounded dividend rate is 0.04. The stock's volatility is 0.28. A European option on the stock expires in 3 months and has strike price 40. Calculate the expected payoff of the option if (a) it is a call; (b) it is a put. 11. A stock's price follows a lognormal model. You are given: The stock's current price is 38. The stock's continuously compounded expected rate of return is 0.14. The stock's continuously compounded dividend rate is 0.04. The stock's volatility is 0.28. A European option on the stock expires in 3 months and has strike price 40. Calculate the expected payoff of the option if (a) it is a call; (b) it is a put