2.(15 points) A put option gives its owner the right to sell a stock for a fixed price. Let PE be the price of a European put option with strike K, maturity T, and underlying stock S that pays a cash dividend d at time 0 Ke-T + ders -S(). (c) (3pts) For d = $5, K = $50, r = 3%, 8 = three months, T = four months, and S(0) = $40 compute the range of the put price. (d) (3pts) Explain how the bounds suggest that d > S(O)e" is impossible. (e) (3pts) Without using options explain why d > S(O)e" is impossible. 2.(15 points) A put option gives its owner the right to sell a stock for a fixed price. Let PE be the price of a European put option with strike K, maturity T, and underlying stock S that pays a cash dividend d at time 0 Ke-T + ders -S(). (c) (3pts) For d = $5, K = $50, r = 3%, 8 = three months, T = four months, and S(0) = $40 compute the range of the put price. (d) (3pts) Explain how the bounds suggest that d > S(O)e" is impossible. (e) (3pts) Without using options explain why d > S(O)e" is impossible