The current price of a stock is $105. The annual risk free rate is 5%. A call option with a stike price of $105 and with one year until expiration has a current value of \$10. What is the value of a put option on the same stock with the same exercise price and expiration date as the call option? $10 $5 $15 $3 QUESTION 7 You bought two types of call options, one Amenican and one European, with the same strke price and expiration date on Microsont. After you purchased them, Microsoft announced a large cash dividend that is payable before expiration. Which option has more value? The european call option. The American call option. QUESTION B A private equity fund was reported to have an IRR of 15% over as so yoar life span. You know that they makde an acquisition when the fund started from which they received a dividend 6 months later. in the IRR calculation, what annualized reinvestment return was assumed on that dividend until the end of the 8 year period? The 589 5007s annualized return for that period of 7% The average risk free rase for that time period of 6% The internal rate of return of 15% The weighted averoge cont of capital of the acquired company of 12%