QUESTION 2 (a) Use the Black-Scholes pricing formulas to calculate the prices of both a European call and a European put option written on stock X if the current price of stock X is $93, the strike price is $95, the spot interest rate is 8%, the volatility is 29%, and the time to expiry is 4 months, assuming no dividends and no transaction costs. (5 marks (b) Assuming the same conditions as in part (a) current stock price is $93, strike price is $95, spot interest rate is 8%, volatility is 29%, and time to expiry is 4 months - recalculate the European call and European put option prices if stock X now pays continuous dividends with a dividend yield of 12%. (5 marks