A stock currently trades at $100. It is expected that dividends of $2.00/share will be paid to owners of the stock at 1 month and at 4 months from the current date. Consider these dates as ex-dividend dates as well. The continuously compounded risk free rate is 5%. European call and put options on the stock with exercise prices of $96 and 6 months to the expiration date are currently trading. Question 25 The lower bound for the value of an American call option on the stock with an exercise price of $96 and a time to expiration of 6 months should be closest to: Not yet answered a. $4.3984 Marked out of O b. $3.5971 1.00 Oc. $2.4116 Remove flag A stock currently trades at $100. It is expected that dividends of $2.00/share will be paid to owners of the stock at 1 month and at 4 months from the current date. Consider these dates as ex-dividend dates as well. The continuously compounded risk free rate is 5%. European call and put options on the stock with exercise prices of $96 and 6 months to the expiration date are currently trading. Question 25 The lower bound for the value of an American call option on the stock with an exercise price of $96 and a time to expiration of 6 months should be closest to: Not yet answered a. $4.3984 Marked out of O b. $3.5971 1.00 Oc. $2.4116 Remove flag