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A call with a strike price of $40 is available on a stock currently trading for $35. The call expires in one year and the

A call with a strike price of $40 is available on a stock currently trading for $35. The call expires in one year and the risk-free rate of return is 10%.

The lower bound on this call's value:

A. is zero

B. is $1.36 if the call is European-style

C. is $5 if the call is American-style

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