The spot price of the stock is 46

The strike price of the option is 48

Based on the fact that the spot price, the strike price, and the continuously compounded risk-free interest rate are 6% per year, please conduct an option evaluation and answer the relevant questions according to the following instructions:

Black-Scholes-Merton model:

Using the information given above regarding the spot and strike price, risk-free rate of return and the fact that the volatility of the share price is 18%, answer following questions:

i.What is the price of an eight-month European call?

j.What is the price of an eight-month American call?

k.What is the price of an eight-month European put?

l.How would your result from k. change if a dividend of $1 is expected in three months? How would your result from k. change if a dividend of $1 is expected in ten months?

Note for calculations with the BSM model: Keep four decimal points for d1 and d2. Use the Table for N(x) with interpolation in calculating N(d1) and N(d2).

Finally,

m.Compare the results you obtained for the prices of European puts and calls using binomial trees and Black-Scholes-Merton model. How large are the differences when expressed as a percentage of the spot price of the share? Provide a possible explanation for these differences.

and can you use the correct formulas and steps, which will make it easier for me to understand, thank you