please solve this two questions with the steps

7. The underlying stock of a 6 month American call option will pay a dividend at the end of 5 months. The current stock price is S34. The strike price is S30 and the risk-free rate is 10% pa. continuously compounded. An equivalent European call option on the same stock has a time value of S0.25 at the ex- dividend price of $32. How high must the dividend per share be at the end of the 5th month for there to be some chance of early exercise? A. $2 B. $0.50 C. $1.70 D. $4 Consider a five-year senior CDS on Beta Corp.. Beta Corp.'s default probability is 2% and increases by 1 percentage point per year. The survival rate in Year 5 is 8. A. 93.4% B. 81.5% C. 94% D. None of the answers