What is the lower bound of the given option

Reference no: EM132019482

Question: A non-dividend-paying stock sells at $113.25. The annually compounded risk-free rate was 7.50 percent. A European call is written on the stock with a strike price of $105 and time to expiration of 0.1342 year. What is the lower bound of this option? The response must be typed, single spaced, must be in times new roman font (size 12) and must follow the APA format.

Reference no: EM132019482

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