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2. (20 points) For a 1-year European call option on a stock, you are given: (a) The stock's price is 45. (b) The stock pays

2. (20 points) For a 1-year European call option on a stock, you are given: (a) The stock's price is 45. (b) The stock pays continuous dividends proportional to its price at a rate of 0.02 (c) The stock's annual volatility is 0.1 (d) The continuously compounded risk-free interest rate is 0.04. (e) Using the Black-Scholes formula, 0.5. Determine the strike price

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