Consider an American put option on a stock, with a $65 strike and 1-year to expiration. The stock has a continuous dividend yield of 9%, and its current price is $42. Suppose the volatility of the stock is 15%. The continuously compounded risk-free interest rate is 7%. Use a three-period lognormal tree to calculate the following: (a) The payoff at time 2: Up movement. (b) The payoff at time 2: Middle movement. (c) The payoff at time 2: Down movement. (d) The payoff at time 1: Up movement. (e) The payoff at time 1: Down movement. (1) The option cost at time 0. (A) 18.09. (B) 14.09 (C) 16.09 (D) 17.09 (E) 15.09 (a): Select 1 Part (a) choices (A) 25.87 (B) 24.87 (C) 26.87 (D) 22.87 (E) 23.87 (b): Select 1 Part (b) choices (A) 27.41 (B) 26.41 (C) 30.41 (D) 29.41 (E) 2841 (c): Select Part (c) choices (A) 19.68 (B) 17.68 (C) 15.68 (D) 16.68 (E) 18.68 9(a). Select 1 Part (ay choices (A) 25.88 (B) 26.88 (C) 24.88 (D) 23.88 (E) 22.88 9) Select t Part (choices (A) 20.00 (B) 19.00 (C) 21.00 (D) 22.00 (E) 23.00 Select t Part (n) cho ces Save