4 When the strike price increases with all else remaining the same, which of the following is true? * (1 Point) Both calls and puts increase in value Both calls and puts decrease in value Puts increase in value while calls decrease in value Calls increase in value while puts decrease in value LO 5 The price of a stock, which pays no dividends, is $25 and the strike price of a one year European call option on the stock is $20. The risk-free rate is 4% (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? * (1 Point) 5.00 4.78 5.78 4.00