Consider the following questions on the pricing of options on the stock of ARa Inc; a. A share of ARB stock sells for $80 and has a-standard deviation of roturns equal to 26% per year. The current risk-free rate is 8% and the stock-pays two dividends: (1) a $2 dividend just prior to the option's expiration day, which is 91 days from now (h.e-, exactly ane-quarter of a year), and (2) a 52 dividend 182 days from now (i.e., exactly one-half year). Calculate the Biack-5choles value for a 91 -day European-style call option with an exercise price of 572 . Use the modifyed model that assumes the dividend yield is paid continuously. You may use Appendix D to answer the question. Do not round intermediate calculations. Round your answer to the nearest cent. b. What would be the price of a 91 -day European-style put option on ArB stock having the same exercise grice? Do not round intermediate calculations, Round your answer to the nearest cent. 13 E. Calculate the change in the call option's value that would occur it AfB's mansgement suddenly decided to suspend dividend payments and this action had no effect on the price of the company's stock. You may use Appendix D to answer the question. Do not round intermedate calculations. Aound your answer to the nearest cent The price would (3) by s