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Thanks @David Harper. Its usefull. And this three question you quote was the same questions i was doubted. Now i can solve it easily due to you explanation.

Thx Nicole, but the correction made by David just add the 5% dividend yield. My dubt is that: they are assuming that just the risk free interest rate is continuous compounding. And the dividend yield is per annum (not specified the time compounding). So, why in the way they solve the problem...

Hend, why the book and you are using the 5% abd 2% dividend yield as constinuous rate? It ok that the average is 3.2, if all the rates are continuous compounding, otherwise, its wrong. In the same way, if the dividend rate arent continuous compound, shouldnt you do the convertion to use in the...