4. The current stock price is $50. The stock pays a 2.5% continuous dividend. A forward start option will give you, six months from today, a three month at-the-money call option. The stock volatility is 25% and the continuously compounded risk-free rate is 5%. Assume that ro and 8 will remain the same over the next 9 months. (a) Find the value of the forward start option three months from today. What fraction of the stock price does the option cost? (Hint: The value of the forward start option three months from today will be in terms of So.25-) (b) What investment today would guarantee that you had the money in six months to purchase an at-the-money call option that matures in nine months from today? (c) Find the current price of the forward start option. 4. The current stock price is $50. The stock pays a 2.5% continuous dividend. A forward start option will give you, six months from today, a three month at-the-money call option. The stock volatility is 25% and the continuously compounded risk-free rate is 5%. Assume that ro and 8 will remain the same over the next 9 months. (a) Find the value of the forward start option three months from today. What fraction of the stock price does the option cost? (Hint: The value of the forward start option three months from today will be in terms of So.25-) (b) What investment today would guarantee that you had the money in six months to purchase an at-the-money call option that matures in nine months from today? (c) Find the current price of the forward start option