Suppose the Price of a Non-Dividend Paying Stock is $100 Today

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Non-Dividend

7. (20 pts) Suppose the price of a non-dividend paying stock is $100 today and the continuous compounding interest rate is r = 7%. (7a) Find the range for the price of an American put with strike price X = 110 and T = 2. (75) Suppose that the price of an European call with X = 110 and T = 2 is $6, find the range for the price of an American put with the same X and T.

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