Consider a european-style put on a stock with price 49 the


Question: 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%. What would be the greatest arbitrage-free lower bound for this call?

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Finance Basics: Consider a european-style put on a stock with price 49 the
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