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Question 8 (8.33 points) What is the price of a $42.5 strike call? Assume S = $38, o = 0.35(continuously compounded annual rate), r =

Question 8 (8.33 points) What is the price of a $42.5 strike call? Assume S = $38, o = 0.35(continuously compounded annual rate), r = 0.04(continuously compounded annual rate), the stock pays a 1.25% continuous dividend and the option expires in 120 days? (Use 360 days as one-year convention.)
O $2.83
O $1.54
O $5.01
O $4.37

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