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4. Consider a six-month call option on a non-dividend-paying stock with the current stock price of $70 and the strike price of $65. Assuming the

4. Consider a six-month call option on a non-dividend-paying stock with the current stock price of $70 and the strike price of $65. Assuming the risk-free interest rate is10% per annum, the lower bound for the price of this stock is:

Answer

		-$1.58
		+$5
		$5.25
		$8.17

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