B C D E P R. Assignment mo Conside dividend paying stock when the stock price is $67, the exercise price is n option on a no (-free rate is 0.5% , the market volati lity is 30 % and the time to maturity is 6 months. Using $61, the rl ute the price of the option if it is a European Call. ii) Compute the price of the option if it is an American Call. ii) Compute the price of the option if it is a European Put. (iv) Assuming two dividend payments $1.75 and $2.75, two months and five months from now, (v) Refer to the dividend information provided in (iv) above. Compute the price of the option if it is an American Call. Provide a graphical illustration to demonstrate how the price of this American Call and the payoff from the same change with respect to changes in the stock price. 6 7 10 11 12 13 15 16 17 30 21 B C D E P R. Assignment mo Conside dividend paying stock when the stock price is $67, the exercise price is n option on a no (-free rate is 0.5% , the market volati lity is 30 % and the time to maturity is 6 months. Using $61, the rl ute the price of the option if it is a European Call. ii) Compute the price of the option if it is an American Call. ii) Compute the price of the option if it is a European Put. (iv) Assuming two dividend payments $1.75 and $2.75, two months and five months from now, (v) Refer to the dividend information provided in (iv) above. Compute the price of the option if it is an American Call. Provide a graphical illustration to demonstrate how the price of this American Call and the payoff from the same change with respect to changes in the stock price. 6 7 10 11 12 13 15 16 17 30 21