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Suppose the interest rate is r=.06 per year compounded continuously and the current value of an asset, S, is $100. a)What is the lower bound

Suppose the interest rate is r=.06 per year compounded continuously and the current value of an asset, S, is $100.

a)What is the lower bound for C110 with expiration date 1 year from now.

b)Suppose C110 costs $3 with expiration date 1 year from now. How much is P110?

c)Suppose C90P90= $15 with expiration date. 5 year from now.What strategy should you adopt? How much money can you make?

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