1.Consider the Black-Scholes equation for a European call option on an assest with a constant ,continuous dividend yield ,DS .Transform the problem to a diffusion equation problem .how many dimensionless parameter are there ?2.What is the value of a European call option on an assest paying a constant ,continuous dividend yield ,DS ?3.What is the value of a European call option on an assest paying a single discrete ,dividend yield ,DS ?4.An assest pays a continuous dividend yield ,DS .Find the put-call parity relationship for European options on this underlying. 5.An assest pays a single discrete,dividend yield ,DS .Find the put-call parity relationship for European options on this underlying.

What is the value of a European call option on an assest paying a constant ,continuous dividend yield ,DS ?it's the same as having an effective reduced interest rate of (r-div yield) and using the black scholes.What is the value of a European call option on an assest paying a single discrete ,dividend yield ,DS ?just find the NPV of all dividends till expiration and adjust your future price for that4.An assest pays a continuous dividend yield ,DS .Find the put-call parity relationship for European options on this underlying. 5.An assest pays a single discrete,dividend yield ,DS .Find the put-call parity relationship for European options on this underlying.Put Call parity for both the above cases is C-P=NPV(Futures price-Strike price)Text