The price of a stock which pays no dividends is 30 and the, Finance Basics

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The price of a stock which pays no dividends is 30 and the

Question: The price of a stock, which pays no dividends, is $30 and the strike price of a three-year Europen call option on the stock is $25. The risk-free rate is 4% (continuously compounded). Which of the following is a lower bound for the option such that there are no arbitrage opportunities if the price is below the lower bound and no arbitrage opportunities if it is above the lower bound?

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