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What is the price of an eight-month european call

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Spot price=86, strike price=88m, risk-free rate of return with continuous compounding of 6% and the fact that the volatility of the share price is 18%, answer following questions:

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

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

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

d. 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?

Reference no: EM132648663

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