A stock price (which pays no dividends) is $33 and the strike price of a two year European put option is 560. The risk-free ride is 8% (continuously compounded). What is a lower bound for the upon (2 points) 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? Answers 1-1 1. RSION 2M 92 Previous
