1. List the six factors that affect stock option prices.
2. What is a lower bound for the price of a 4-month call option on a non-dividend-paying stock when the stock price is $28, the strike price is $25, and the risk-free interest rate is 8% per annum?
3. What is a lower bound for the price of a 1-month European put option on a nondividend-paying stock when the stock price is $12, the strike price is $15, and the riskfree interest rate is 6% per annum?