Please just anwser question 14 using the info from question 1.(do not have to answer question 1)

1. Consider the valuation of a European call on stock XYZ with a strike price of $110 and a term to maturity of three months. Assume the stock price is $100 today and it has a lognormal distribution with annualized volatility of 40% over the life of the option. The continuously compounded rate of interest is 2% per year. Use the Black-Scholes formula to calculate the theoretical value of the call. Hint: I calculate a=4.5902 and b=0.2000 for this baseline case. 14. Dividends in the Model Assume that the call from question 1 pays a $4 dividend in 3 months (immediately before expiration). Use equations 19.25, 19.26, 19.27, and 19.28 from pages 430-431 to value the call. 1. Consider the valuation of a European call on stock XYZ with a strike price of $110 and a term to maturity of three months. Assume the stock price is $100 today and it has a lognormal distribution with annualized volatility of 40% over the life of the option. The continuously compounded rate of interest is 2% per year. Use the Black-Scholes formula to calculate the theoretical value of the call. Hint: I calculate a=4.5902 and b=0.2000 for this baseline case. 14. Dividends in the Model Assume that the call from question 1 pays a $4 dividend in 3 months (immediately before expiration). Use equations 19.25, 19.26, 19.27, and 19.28 from pages 430-431 to value the call