What is the lower bound for the price of a 2 month European put option on a non-dividend paying stock when the stock price $58, the strike price is $65 and the risk free interest rate is 5% per annum? Exercise 5 A trader buys a call option with a strike price of $45 and a put option with a strike price of $40. Both options have the same maturity. The call costs $3 and the put costs $4. Draw a diagram showing the variation of the trader's profit with the asset price