Part 1. What are the lower bounds for both American and European calls and puts? Compare the lower bounds for both the American and European calls and the American and European puts. Which ones are the same and which ones are different? Explain why.

Part2 Explain when it would be appropriate to exercise calls early. Explain when it would be appropriate to exercise puts early. Given that they are in the money, give an example of when exercising early would be inappropriate. Explain your answer.