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Consider a European-style put on a stock with price $44; the put has a strike price of $50, time-to-expiration of 300 days. Assume that there
Consider a European-style put on a stock with price $44; the put has a strike price of $50, time-to-expiration of 300 days. Assume that there are no dividends expected for the coming year on the stock and the interest rate is 10%. The greatest arbitrage-free lower bound for this put would be: $0.00 $1.00 $2.23 $3.00 $6.00
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