The current price of a non-dividend-paying stock is $38. Over the next six months it is expected to rine or fall by 10%

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The current price of a non-dividend-paying stock is $38. Over the next six months it is expected to rine or fall by 10%. Assume the risk-tree rate is zero. An investor sells six-month call options with a strike price of $32. Which of the following hedges the position? O a-Short 0.3 shares for each call option sold O b- long 0.4 shares for each call option sold O c- long D.3 shares for each call option sold Od- Short 04 shares for each call option sold O o O O 2-Consider a 1 year forward contract on a stock when the stock price is $30 . We assume that the risk - free rate of interest continuously compounded is 6% per annum for all maturities. We also assume that dividends of $4 per share are expected after three months, six months, nine months and 12 months. What is the present value of the dividends ? $4.00 $15.41 O $3.77 O $11.47