The following data is available: a dividend-paying stock with a stock price S=40.50 and strike price K=37. The risk-free interest rate is r=4.5%, the time to maturity is 12 months, and volatility is 15%. It is expected that a dividend of $3 will be paid after six and twelve months. a) Using DerivaGem*, an Excel tool provided with the textbook, find the price of a European call and European put on the stock. b) Using DerivaGem*, analyze the effect on the put and call option prices in a) with 1) variations in the strike price, 2) volatility, and 3) the risk-free rate, holding other factors constant. Graph the results and discuss the reasons for the observed effects. *see Hull, p.829 Chapter: DerivaGem for an overview of the software; Select Option type: Black-Scholes European. The DerivaGem software is available for download from www-2.rotman.utoronto.ca/~hull/software for free.