An investor focuses on a European call option and a European put option on a nondividend-paying stock. The two options have the same strike price of 80 and will expire in 6 years. The put option sells for 0.25 less than the call option now. The market price of stock price is 60 . a. Calculate the continuously compounded risk-free interest rate. b. Show with the help of a payoff diagram on the expiry date why you can find the answer to (a) above given the limited information. c. If the stock pays dividends of fixed amounts at fixed times prior to the option maturity, how will the result change? An investor focuses on a European call option and a European put option on a nondividend-paying stock. The two options have the same strike price of 80 and will expire in 6 years. The put option sells for 0.25 less than the call option now. The market price of stock price is 60 . a. Calculate the continuously compounded risk-free interest rate. b. Show with the help of a payoff diagram on the expiry date why you can find the answer to (a) above given the limited information. c. If the stock pays dividends of fixed amounts at fixed times prior to the option maturity, how will the result change