Question: please show work 2. (5 pts) A stock is currently priced at $43.50. Consider 3-month American-style Cail optrons (with a strike price of $40 )
2. (5 pts) A stock is currently priced at $43.50. Consider 3-month American-style Cail optrons (with a strike price of $40 ) and Put options (with a strike price of $50 ) on a given stock. The annualized risk-free interest rate is 5%. What are the lower-price bounds of each of these two options: Call: LPB= Put: PB
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