Question: Please help me respond to the following questions while elaborating on your insight and providing external support ideas: Holding all else constant, if dividends increase,

Please help me respond to the following questions while elaborating on your insight and providing external support ideas:

Holding all else constant, if dividends increase, does the difference between American calls and puts increase or decrease? Why? What about the difference between European calls and puts?

Explain in a heuristic manner why option replication on a binomial tree is a dynamic strategy. Expand your thoughts by providing external support that helps to provide further insight into the use of binomial trees.

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