[Solved] A European option on a stock with known dollar dividend is valued by setting the stock price variable equal to the stock price minus the present value of the dividend in the Black-Scholes-Merton formula. A second price can be obtained using the tree building procedure in the chapter. Which of the following is true when a very large number of time steps are used in the tree? A) The first price is higher than the second price B) The first price is lower than the second price C) The first price is sometimes higher and sometimes lower than the second price D) The two prices are almost exactly the same Reminder: A communication tool used to prompt or encourage an audience to remember and consider a product, service, event, or message. Sex Appeals: The use of sexually suggestive or erotic imagery in advertising to draw interest to a product or service, often provoking emotional responses from the audience. Younger Audiences: Target demographic groups composed of younger individuals, typically children and teenagers, with specific consumer habits and preferences. Recall, Recognition: The ability to remember (recall) information or to identify (recognition) previously encountered information or experiences.