Question: Given that: K = $20, $. - $19, T = %2 years C = $1.50. r = 10% per annum continuously compounded. Calculate the lower

Given that: K = $20, $. - $19, T = %2

Given that: K = $20, $. - $19, T = %2 years C = $1.50. r = 10% per annum continuously compounded. Calculate the lower and upper bounds for P, assuming that the stock pays no dividends over the life of the options. [26]

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