Consider a European put option on a stock, with a $52 strike and 1-year to expiration. The stock has a continuous dividend yield of 5%, and its current price is $30. Suppose the volatility of the stock is 30%. The continuously compounded risk-free interest rate is 5%. Use a two-period lognormal tree to calculate the following: (a) The payoff at time 2: Up movement. (b) The payoff at time 2: Middle movement. (c) The payoff at time 2: Down movement. (d) The payoff at time 1: Up movement. (e) The payoff at time 1: Down movement. (f) The option cost at time 0. (A) 12.16 (B) 9.16 (C) 8.16 (D) 11.16 (E) 10.16 Problem #4(a): Select v Part (a) choices. (A) 24.32 (B) 22.32 (C) 25.32 (D) 23.32 (E) 26.32 Problem #4(b): Select v Part (b) choices. (A) 32.24 (B) 34.24 (C) 36.24 (D) 35.24 (E) 33.24 Problem #4(c): Select v 1 Part (c) choices. (A) 17.35 (B) 18.35 (C) 16.35 (D) 15.35 (E) 19.35 Problem #4(d): Select v Part (d) choices. (A) 24.58 (B) 23.58 (C) 25.58 (D) 26.58 (E) 27.58 Problem #4(e): Select 1 Part (e) choices. (A) 17.93 (B) 21.93 (C) 19.93 (D) 20.93 (E) 18.93 Problem #4(f): Select v Part (f) choices. Consider a European put option on a stock, with a $52 strike and 1-year to expiration. The stock has a continuous dividend yield of 5%, and its current price is $30. Suppose the volatility of the stock is 30%. The continuously compounded risk-free interest rate is 5%. Use a two-period lognormal tree to calculate the following: (a) The payoff at time 2: Up movement. (b) The payoff at time 2: Middle movement. (c) The payoff at time 2: Down movement. (d) The payoff at time 1: Up movement. (e) The payoff at time 1: Down movement. (f) The option cost at time 0. (A) 12.16 (B) 9.16 (C) 8.16 (D) 11.16 (E) 10.16 Problem #4(a): Select v Part (a) choices. (A) 24.32 (B) 22.32 (C) 25.32 (D) 23.32 (E) 26.32 Problem #4(b): Select v Part (b) choices. (A) 32.24 (B) 34.24 (C) 36.24 (D) 35.24 (E) 33.24 Problem #4(c): Select v 1 Part (c) choices. (A) 17.35 (B) 18.35 (C) 16.35 (D) 15.35 (E) 19.35 Problem #4(d): Select v Part (d) choices. (A) 24.58 (B) 23.58 (C) 25.58 (D) 26.58 (E) 27.58 Problem #4(e): Select 1 Part (e) choices. (A) 17.93 (B) 21.93 (C) 19.93 (D) 20.93 (E) 18.93 Problem #4(f): Select v Part (f) choices