Question: 8. Derivatives 8a. What is a lower bound for the price of a two-month call option on a non-dividend-paying stock when the stock price is

8. Derivatives 8a. What is a lower bound for the price

8. Derivatives 8a. What is a lower bound for the price of a two-month call option on a non-dividend-paying stock when the stock price is $29, the strike price is $24, and the risk-free interest rate is 4% per annum? 8b. Please show the arbitrage strategy if the price of this option is below the lower bound. 8c. What if there is a $3 cash dividend in 1 month, what would be the new lower bound

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