1. A. What is a lower bound for the price of a four-month call option on a non-dividend-paying stock when the stock price is $30, the strike price is $25, and the risk- free interest rate is 8% per annum? (5 points) B. A foreign currency is currently worth $3. The domestic and foreign risk-free interest rates are 5% and 9%, respectively. Calculate a lower bound for the value of a six-month call option on the currency with a strike price of $2.80 if it is (a) European and (b) American