Question 111 pont) Please briefly explain why is not optimal to early exercise an American call option (on a non-dividend- paying stocks) but it can be optimal to early exercise an American put option (on a non-dividend paying stocks)? Question 2 (1 point) A 2-year long forward contract on a non-dividend-paying stock is entered into when the stock price is $40 and the risk-free rate of interest is 10% per annum with continuous compounding. a. What are the forward price and the initial value of the forward contract? b. One year later, the price of the stock is $45 and the risk-free interest rate is still 10%. What are the forward price and the value of the forward contract