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A non-dividend-paying stock is priced at $120. The risk-free interest rate is 5% per annum with continuous compounding. Find the lower bound for the following

A non-dividend-paying stock is priced at $120. The risk-free interest rate is 5% per annum with continuous compounding. Find the lower bound for the following two call options. Both call options have a strike price of $122 and will expire in 6 months.

(a) An European call

(b) An American call

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