7. A stock trades at $120 and has a standard deviation of returns of .4, use the Black-Scholes model to price a call and a put that expire in 180 days. The call and put options have an exercise price of $100. The risk-free rate is 8 percent. Assume the stock will pay a dividend of $3 on day 75. Apply the known dividend adjustment to the Black-Scholes model and compute new call and put prices