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Suppose the price of a non-dividend paying stock is $100 today and the continuous compounding interest rate is r = 7%. (7a) (10 pts) Find

Suppose the price of a non-dividend paying stock is $100 today and the continuous

compounding interest rate is r = 7%.

(7a) (10 pts) Find the range for the price of an American put with strike price X = 110 and

T = 2.

(7b) (10 pts) Suppose that the price of an European call with X = 110 and T = 2 is $6, and

the range for the price of an American put with the same X and T.

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