Consider a european-style put on a stock with price 49 the, Ask an Expert

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Consider a European-style put on a stock with price $49; the call has a strike price of $50, time-to-expiration of 300 days. Assume that there are no dividends expected for the coming year on the stock and the interest rate is 10%. The greatest arbitrage-free lower bound for this call would be:

$0.00

$1.00

$2.23

$3.00

$6.00

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Financial Management, Finance

Category:- Financial Management
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