What Is the Lower Bound of a European Call on a Futures

question 42

Multiple Choice

What is the lower bound of a European call on a futures where f₀ is the futures price and X is the exercise price? Assume f₀ is greater than X.

• A)the difference between f₀ and X
• B)zero
• C)the present value of the difference between f₀ and X
• D)the ratio of f₀ to X
• E)none of the above

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To encourage something to grow, develop, or become active.

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The branch of pharmacology concerned with the effects of drugs and the mechanism of their action in the body.

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Small, typically cylindrical, dosage forms designed to encapsulate medicines for oral administration, aiding in ease of consumption and absorption.

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Describes an object or structure with a circular base and parallel sides, extending equally in height.