Explain how and why an increase in the current stock price and the strike price...
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Finance
Explain how and why an increase in the current stock price and the strike price affects the prices of both call and put options, holding all other variables constant:
What is a lower bound for the price of a nine-month European put option on a non-dividendpaying stock when the stock price is $65, the strike price is $69, and the risk-free interest rate is 5% per annum?
What is a lower bound for the price of a nine-month European call option on a non-dividendpaying stock when the stock price is $75, the strike price is $70, and the risk-free interest rate is 8% per annum?
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