A stock index is currently 300 the dividend yield on the


A stock index is currently 300, the dividend yield on the index is 3% per annum, and the risk-free interest rate is 8% per annum.

What is a lower bound for the price of a sixmonth European call option on the index when the strike price is 290?

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Financial Management: A stock index is currently 300 the dividend yield on the
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