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Consider a European call option with current spot price s 0 = 2 0 , dividend d = 2 , strike price, 1 8 and

Consider a European call option with current spot price s0=20, dividend d=2,
strike price, 18 and 6-months time to maturity. The risk-free rate is 10% p.a.
What are the upper and lower bounds of the price of the call option? What are
the upper and lower bounds for a put option with the same characteristics?

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