A stock currently trades at $90. 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 $95 and 6 months to the expiration date are currently trading. Use this information to answer this and the next three questions. The lower bound for the value of the European put is closest to: O a. $6.6131 O b. $5.0000 O c. $2.6544 d. $0.0000 If the European put option has a market price (premium) of $4.00, the correct arbitrage strategy would involve: O a. Buy the put, buy the stock, borrow the stock purchase price at the risk free rate O b. Buy the put, short-sell the stock, invest the proceeds of the short-sale in the risk free asset c. Write the put, buy the stock, borrow the stock purchase price at the risk free rate O d. Write the put, short-sell the stock, invest the proceeds of the short-sale in the risk free asset Suppose that the European put option has a market price (premium) of $8.00. Based on put-call parity, the price of a European call on the stock with the same exercise price and time to expiration should be closest to: a. $2.6544 O b. $0.0000 c. $1.3869 O d. $5.3456 The lower bound for the value of an American put option on the stock with an exercise price of $95 and a time to expiration of 6 months should be closest to: O a. $7.3884 O b. $5.0000 C. $6.5967 d. $0.0000