Question 3/25 (1 p.) Answer is mandatory The price of a stock, which pays no dividends, is $30 and the strike price of a
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Question 3/25 (1 p.) Answer is mandatory The price of a stock, which pays no dividends, is $30 and the strike price of a
Question 3/25 (1 p.) Answer is mandatory The price of a stock, which pays no dividends, is $30 and the strike price of a one year European coll option on the stock is $32. The risk-free rate is 6% (continuously compounded). Which of the following is a lower bound for the 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? O $30 O $32 Do S:0.13 SO