Company A announces that it will pay $2 dividend and the ex-dividend date for stock A is in 1 month. Company B announces the 5-for-6 stock split, which will be executed immediately.

Using Black-Scholes formula, please calculate the price of both options. Add additional comments, if necessary.

Please assume that volatility of both stocks will not change

please show work on excel

A B C D E F G H I J K Company A announces that it will pay $2 dividend and the ex-dividend date for stock A is in 1 month. Company B announces the 5-for-6 stock split, which will be executed immediately. 4 5 6 7 8 9 9 10 Using Black-Scholes formula, please calculate the price of both options. Add additional comments, if necessary. Please assume that volatility of both stocks will not change 11 $45.00 $41.00 4% 0.3 0.25 12 13 S. 14 K 15 r 16 sigma, s 17 T 18 19 Stock A 20 Div 21 t 22 S 23 K 24r 25 sigma, s 26 T 27 28 d $2.00 0.5 0.5 29 d2 30 31 Nd 1) 32 N(2) 33 34 35 c 36 37 5 for 6 38 Stock B 39 Split 40 41 S 42 K 43 r 44 sigma, s 45 T 46 47 di 48 d2 49 50 N(D1) 51 N(d 2) 52 53 54 c 55 Comment 56 A B C D E F G H I J K Company A announces that it will pay $2 dividend and the ex-dividend date for stock A is in 1 month. Company B announces the 5-for-6 stock split, which will be executed immediately. 4 5 6 7 8 9 9 10 Using Black-Scholes formula, please calculate the price of both options. Add additional comments, if necessary. Please assume that volatility of both stocks will not change 11 $45.00 $41.00 4% 0.3 0.25 12 13 S. 14 K 15 r 16 sigma, s 17 T 18 19 Stock A 20 Div 21 t 22 S 23 K 24r 25 sigma, s 26 T 27 28 d $2.00 0.5 0.5 29 d2 30 31 Nd 1) 32 N(2) 33 34 35 c 36 37 5 for 6 38 Stock B 39 Split 40 41 S 42 K 43 r 44 sigma, s 45 T 46 47 di 48 d2 49 50 N(D1) 51 N(d 2) 52 53 54 c 55 Comment 56