3. A European call option is written on a stock whose current price S=80. The exercise price X=80, the interest rate r=8%, and the time to option exercise T=1. The stock is assumed to pay a dividend of 3 at time t=1/2. Use Proposition 7 to determine the minimum price of the call option. \begin{tabular}{|l|r|} \hlineS & 80 \\ \hlineX & 80 \\ \hline Interest rate & 8% \\ \hlineT & 1 \\ \hline Dividend att=0.5 & 3 \\ \hline \end{tabular} Minimum option price (following Proposition 7): Minimum call price Use discrete discounting here Use continuous discounting here