3. (16%) GLD's share price = $113.10 (The ticker symbol GLD stands for SPDR Gold Shares; an ETF holds gold); GLD May 110 call price = $4.34; No dividend is expected by option expiration. (a)(3%) If Don owned one call option contract and decided to early exercise his option contract, calculate his payoff (early exercise value) based upon the current market information. (b) (3%; 2%) The lower bound of a European call option is Max[0, So-Xe") per unit. Calculate this lower bound (r=2% per annum; T=1 month) for one contract. Is this lower bound greater than the early exercise value obtained in part (a)? (c) (3%; 2%) If Don owned one call option contract and decided to sell his option contract in the market, calculate the amount of sale proceeds. Is the amount of sale proceeds greater than the early exercise value obtained in part (a)? (d) (3%) If Don doesn't want to hold the option contract in part (a), he can early exercise this contract or sell it in the option market. What is his best action