Question: Question 6 a) Derive the upper and lower bounds for the price of a call option. (Hint: Consider two portfolios, the first portfolio consists of

Question 6 a) Derive the upper and lower bounds for the price of a call option. (Hint: Consider two portfolios, the first portfolio consists of one call and some zero-coupon bond and the second portfolio consists of one stock) b) Discuss any three variables that affect option prices, providing some intuitive reasons for your answer. Consider one call and one put option

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