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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 s dividend d
strike price, and months time to maturity. The riskfree rate is pa
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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