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The price of a stock, which pays no dividends, is $30 and the strike price of a one year European call option on the stock is $25. The risk-free rate is 4% (continuously compounded). Which of the following is a lower bound for the option such that there are arbitrage opportunities if the price is below the lower bound and no arbitrage opportunities if it is above the lower bound? $5.00 $5.98 $4.98 $3.98 A four-month European call option on a dividend-paying stock is currently selling for $3. The stock price is $63, the strike price is $59, and a dividend of $0.80 is expected in one month. The risk-free interest rate is 12% per annum for all maturities. What opportunities are there for an arbitrageur? Buy call, buy stock Buy call, sell stock Sell call, buy stock Sell call, sell stock