8) Consider the following questions on the pricing of options on the stock of ARB Inc:

1. A share of ARB stock sells for $75 and has a standard deviation of returns equal to 20 % per year. The current risk-free rate is 9% and the stock pays two dividends: (1) a $2 dividend just prior to expiration day, which is 91 days from now (i.e. exactly one-quarter of a year), (2) a $2 dividend 182 days from now (i.e. exactly one-half year). Calculate the Black-Scholes value for European