Consider a one year American call option with a strike price of $9, written on a dividend paying stock currently trading at $10. The dividend is paid annually and the next dividend is expected to be $1, paid in 6 months. The risk-free interest rate is 5% p.a. continuously compounded and the standard deviation of the stocks returns is 20% pa. Calculate the option price now (t=0) using either the no-arbitrage approach or the risk-neutral approach with a two-step binomial tree with 6 months per step. Remember that the option is American so it can be exercised before maturity.