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6. A two-year European call option is written on a stock whose current price is $20. The stock will pay a dividend of $1 three

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6. A two-year European call option is written on a stock whose current price is $20. The stock will pay a dividend of $1 three months from now and another $1 one and half years from now. The strike price is $18, and the riskfree interest rate is 5%. Then the tightest lower bound for the call option value is, a. $1.8976 b. $1.535 $1.194 d. $1.7976. c

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