QUESTION 9 Suppose you are given the following information: stock price = 26, strike price = 25, U = 1.266, d 0.756, n = 2 (time steps), r = 3.00% (per period), and pays $2 dividend at the end of the first period. Suppose the diviend increases to $4, then the early exercise premium of the above American call option will be higher lower the same cannot be determined QUESTION 10 Suppose you are given the following information stock price 26, strike price 25, u = 1.266, 0.756, n. 2 (time steps), 3.00% (per period), and pays NO dividend at the end of the first period. However, now suppose the firm decides to pay a $0.5 dividend. What will happen to the early exercise premium of the above American call option: It will be higher It will be lower It will stay the same Cannot be determined