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Bounds regarding the option premium of american put

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Reference no: EM133111443

The price of an American call on a non-dividend paying stock is $2.

The stock price is $15.50, the strike price is $15, the expiration date is in 6 months, and the risk free interest rate is 4% continuously compounded.

What are the upper and lower bounds regarding the option premium of an American put on the stock with a strike price of $15 and an expiration date in 6 months?

Reference no: EM133111443

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