Problem 16. A stock is traded for $20 now and will be either $25 or $15 in one year. The interest rate is zero. One dollar dividend is expected, and the exdividend date is in two months. The value of a one-year 20-strilte European put option on the stock should be closest to (a) 2.50 dollars. (b) 1.00 dollars. (c) 3.00 dollars. (d) 5.00 dollars. Problem 17. A stock is traded for $51 now and will be either $54 or $44 three months later. The interest rate is zero. A $2 dividend is expected, and its ex-dividend day is in two months. The value of a 3-month 50-strike european put option on the stock should be closest to (a) 3.00 dollars. (b) 6.00 dollars. (c) 4.20 dollars. (d) 1.80 dollars