Intro The current price of a stock is $313 and the annual standard deviation of the rate of return on the stock is 40%. The stock is expected to pay dividends of $4 in 1 months and $4 in 4 months. An American call option on the stock has a strike price of $340 and expires in 0.5 years. The risk-free rate is 8% (continuously compounded). | Attempt 1/5 for 10 pts. Part 1 What should you do with the option? Exercise it now Exercise it just before the first ex-dividend date Wait until the expiration date Exercise it just before the second ex-dividend date Submit 18 Attempt 1/4 for 10 pts. Part 2 What is the present value of the dividends? 1+ decimals Submit Part 3 18 | Attempt 1/4 for 10 pts. What is the value of N(dt) in the Black-Scholes formula? Use Excel's NORM.S.DIST(d1, true) function. 3+ decimals Submit 1 B Attempt 1/4 for 10 pts. Part 4 What is the value of N(dz)? 3+ decimals Submit Part 5 1 B | Attempt 1/4 for 10 pts. What should be the price (premium) of the call option? 1+ decimals Submit Intro The current price of a stock is $313 and the annual standard deviation of the rate of return on the stock is 40%. The stock is expected to pay dividends of $4 in 1 months and $4 in 4 months. An American call option on the stock has a strike price of $340 and expires in 0.5 years. The risk-free rate is 8% (continuously compounded). | Attempt 1/5 for 10 pts. Part 1 What should you do with the option? Exercise it now Exercise it just before the first ex-dividend date Wait until the expiration date Exercise it just before the second ex-dividend date Submit 18 Attempt 1/4 for 10 pts. Part 2 What is the present value of the dividends? 1+ decimals Submit Part 3 18 | Attempt 1/4 for 10 pts. What is the value of N(dt) in the Black-Scholes formula? Use Excel's NORM.S.DIST(d1, true) function. 3+ decimals Submit 1 B Attempt 1/4 for 10 pts. Part 4 What is the value of N(dz)? 3+ decimals Submit Part 5 1 B | Attempt 1/4 for 10 pts. What should be the price (premium) of the call option? 1+ decimals Submit