2. [2 points] A stock is currently priced at $20 per share. A six-month European put option is available on the stock with a strike price of $17.50. The stock does not pay dividends. Determine the price of the option. The risk-free interest rate is 8% and the volatility is 22.5%. 5. [1 point] If pricing a 6-month option on a dividend paying stock, what value for So should be used in the BSM pricing equation? Suppose the stock's current price is $75 per share and the strike price on an available put option is also $75. The stock's volatility is 28% and the risk-free rate is 5%. A dividend of $1.50 is expected in three months