Consider a European-style put on a stock with price $49; the call has a strike price of $50, time-to-expiration of 300 days. Assume that there are no dividends expected for the coming year on the stock and the interest rate is 10%. The greatest arbitrage-free lower bound for this call would be:
$0.00
$1.00
$2.23
$3.00
$6.00