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2.9 Assume K=$40,=30%,r=0.08,T=0.5, and the stock is to pay a single dividend of $2 tomorrow, with no dividends thereafter. a. Suppose S=$50. What is the

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2.9 Assume K=$40,=30%,r=0.08,T=0.5, and the stock is to pay a single dividend of $2 tomorrow, with no dividends thereafter. a. Suppose S=$50. What is the price of a European call option? Consider an otherwise identical American call. What is its price? b. Repeat, only suppose S=$60. c. Under what circumstance would you not exercise the option today

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