What is lower bound for price of a four-month call option
What is a lower bound for the price of a 4-month call option on a nondividend-paying stock when the stock price is $28, the strike price is $25, and the risk-free interest rate is 8% per annum?
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Montana Corporation acquired equipment for $475,000 at the beginning of the fiscal year, with an estimated useful life of four years or 21,500 operating hours, and a residual value of $45,000.
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