3. Consider a stock with current price So. Call options on this stock with strike price X and expiry after time T currently cost C, while put options with the same strike price and expiration date cost P. The stock is expected to pay a dividend D at time T and the risk-free rate of interest is ry. Determine the pay-offs at time T from each of the following strategies: (a) a protective put, and (b) a call-plus-bills portfolio, where the bills have face value X D Use your findings to obtain a put-call parity theorem for dividend-paying stocks. 3. Consider a stock with current price So. Call options on this stock with strike price X and expiry after time T currently cost C, while put options with the same strike price and expiration date cost P. The stock is expected to pay a dividend D at time T and the risk-free rate of interest is ry. Determine the pay-offs at time T from each of the following strategies: (a) a protective put, and (b) a call-plus-bills portfolio, where the bills have face value X D Use your findings to obtain a put-call parity theorem for dividend-paying stocks