The Current Price of a Stock Is $100 $- \$ 1$

Multiple Choice

The current price of a stock is $100. The stock pays a dividend of $2 in three months. The risk free rate of interest for all maturities in annualized and continuously-compounded terms is 2%. What is the minimum price of an at-the-money American call option on the stock with six months maturity?

A) $- \$ 1$
B) $0
C) $1
D) $2