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a. What is a lower bound for the price of a five-month call option on a...

a. What is a lower bound for the price of a five-month call option on a non-dividend-paying stock when the stock price is $42, the strike price is $38, and the continuously compounded risk-free interest rate is 8% per annum?

b. What is a lower bound for the price of a four-month European put option on a non-dividend- paying stock when the stock price is $31, the strike price is $35, and the continuously compounded risk-free interest rate is 7% per annum?

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