Business
Business, 03.04.2020 17:34, anggar20

6. The price of a stock with no dividends, is $30 and the strike price of a 1 year European call option on the stock is $25. The risk-free rate is 4% (continuously compounded). Compute the lower bound for the call option such that there are arbitrage opportunities if the price is below the lower bound and no arbitrage opportunities if it is above the lower bound

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6. The price of a stock with no dividends, is $30 and the strike price of a 1 year European call opt...

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