Question: Explain how and why an increase in the current stock price and the strike price affects the prices of both call and put options, holding

Explain how and why an increase in the current stock price and the strike price affects the prices of both call and put options, holding all other variables constant:

What is a lower bound for the price of a nine-month European put option on a non-dividendpaying stock when the stock price is $65, the strike price is $69, and the risk-free interest rate is 5% per annum?

What is a lower bound for the price of a nine-month European call option on a non-dividendpaying stock when the stock price is $75, the strike price is $70, and the risk-free interest rate is 8% per annum?

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