Intro The current price of a stock is $339 and the annual standard deviation of the rate of return on the stock is 50%. The stock is expected to pay dividends of $6 in 1 months and S6 in 4 months. A European call option on the stock has a strike price of $350 and expires in 0.5 years. The risk-free rate is 8% (continuously compounded). Part 1 Attempt 2/4 for 8 pts. What should be the price (premium) of the European call option? 1+ decimals Submit Part 2 Attempt 175 for 10 pts. Now assume that the call option is American. What should you do with the option? Exercise it just before the first ex-dividend date Wait until the expiration date Exercise it just before the second ex-dividend date Exercise it now Submit Part 3 IB Attempt 1/4 for 10 pts. What should be the price (Premium) of the American call option according to Black's approximation? 1+ decimals Submit Intro The current price of a stock is $339 and the annual standard deviation of the rate of return on the stock is 50%. The stock is expected to pay dividends of $6 in 1 months and S6 in 4 months. A European call option on the stock has a strike price of $350 and expires in 0.5 years. The risk-free rate is 8% (continuously compounded). Part 1 Attempt 2/4 for 8 pts. What should be the price (premium) of the European call option? 1+ decimals Submit Part 2 Attempt 175 for 10 pts. Now assume that the call option is American. What should you do with the option? Exercise it just before the first ex-dividend date Wait until the expiration date Exercise it just before the second ex-dividend date Exercise it now Submit Part 3 IB Attempt 1/4 for 10 pts. What should be the price (Premium) of the American call option according to Black's approximation? 1+ decimals Submit