I need # 4,5,8 answered

Ouestion 1: What is the difference between an American and European Option? American options can be exercised on any date on or before the expiration date. European options can be exercisod only on the expiration date. Question 2: If I take a short position on a call and the price of the associated FALL.S what happens lo my investment. If the price of the stock tals then I gain. Question 3: What are the three growth stages of a firm? Bustencs. Surviva, success, take oll, and resource maturity. Bonus/Extra Credit Question 4: Name one reason why I would purchase options OTHER THAN financial return EXERCISE: You were just about to invest in a toy factory then your friend told you that you could make more money investing in options than you could purchasing stocks. Question 5: Befoce doing the math please provide one reason for and one reason against this argument Rather than buying the stock of company A you decide to purchase the options instead you consider four options piays based on the following assumption: "Factory A offers $5,00 a share. Dividends are expected to urow at 6% per year and the curnent dividend is $1 per share. The expected rate of renturn is 20%. What should the cuirent itock prica ber? =7.57 Question 6: What type of option would I purchase to trade of the above astumption? (Call v Put \& Short y Long) Curient stock orice is $5, so we should purchasae call option and go long in it based con above assumption Question 7 : Shovild you purchase a American or European Opton? We should purchase the American option because it provides more liquidy. We can sell and buy before maturity date. Benus/Exirn Credit QuesEien 8: If you were 100% Factory A's stock would achieve a 20% return what is the most aggressive strike peice you would purchase