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Consider a European put option expiring in 90 days on a non-dividend-paying stock trading at 82 when the risk-free rate is 4%. The lower bound
Consider a European put option expiring in 90 days on a non-dividend-paying stock trading at 82 when the risk-free rate is 4%. The lower bound for this European put option with an exercise price of 85 is:
| A. | $2.39. | |
| B. | $2.18. | |
| C. | $0. | |
| D. | $2.11. |
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