Find a lower bound for the price of a 40-call

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Reference no: EM131970002

Assume that the price of a 50-put on a single share of stock X has been determined to be $2, that stock X share price today is $45, and that the time premium is 10%. Find a (non-trivial) lower bound for the price of a 40-call.

Reference no: EM131970002

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