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A stock trades at $\$100$ with no dividends and rates are $5\%$ continuously compounded. What is the lower bound on a one-year European call struck at $\$90$ , to two decimal places?

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Payoffs, moneyness and the bounds

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Optiver, SIG (Susquehanna)

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A stock trades at $100 with no dividends and rates are 5% continuously compounded. · QuantMax

A stock trades at $100\$100$100 with no dividends and rates are 5%5\%5% continuously compounded. What is the lower bound on a one-year European call struck at $90\$90$90, to two decimal places?

More options: fundamentals and arbitrage questions

A stock trades at $\$100$ with no dividends and rates are $5\%$ continuously compounded. What is the lower bound on a one-year European call struck at $\$90$ , to two decimal places?