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What is the lower pricing bound for a Eu...

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题目

What is the lower pricing bound for a European call option with a strike price of 80 and one year until expiration? The price of the underlying asset is 90, and the 1-year interest rate is 5% per annum. Assume continuous compounding of interest.

选项

A.14.61

B.13.90

C.10.00

D.5.90

答案

B

解析

The lower bound is the difference between the stock price and the present value of the strike price:「huixue_img/importSubject/1564169528122937344.png」