QUESTION 14 Black Scholes Merton option pricing - with dividends In early April 2021, Woolworths Group is trading at $42.04. Woolworths has announced that it will pay a dividend of $0.185 per share in 62 days and you estimate that it will pay a dividend of $0.22 per share in 224 days. Woolworths Group has a volatility of 37%. What is the price of the 231 day put and call options over this stock that have a strike price of $40, when the risk free rate is 2.4985%? Note: Depending upon the methodology used to calculate the variables in the option pricing formula, students may obtain answers that are within a few cents of the answers provided. Students are advised to select the reponse that most closely matches their values for the options a. Put price is $3.87 and the call price is $5.09 b. Put price is $2.40 and the call price is $8.21 C. Put price is $3.69 and the call price is $5.96 d. Put price is $2.21 and the call price is $2.40