Consider an American call option on a dividend paying stock when: the current stock price is $4.00 the exercise price is S3.25 the volatility is 20% pa. the risk free rate of interest (continuous compounding) is 15% pa. the time to expiry is 3 months the stock is expected to pay a certain dividend of $0.75 in 1% (one and one-half) months time. Use the Binomial Option Pricing model with the life of the option divided into three equal 1- month periods. Required Use a three-period binomial model to value the three-month American call option on this stock. Remember to show detailed calculations of the option value at each node. Consider an American call option on a dividend paying stock when: the current stock price is $4.00 the exercise price is S3.25 the volatility is 20% pa. the risk free rate of interest (continuous compounding) is 15% pa. the time to expiry is 3 months the stock is expected to pay a certain dividend of $0.75 in 1% (one and one-half) months time. Use the Binomial Option Pricing model with the life of the option divided into three equal 1- month periods. Required Use a three-period binomial model to value the three-month American call option on this stock. Remember to show detailed calculations of the option value at each node