european-stock-option

The lower bound for the price of a European call option is given by max[0, S(0) - K*exp(-rT) - D]. The lower bound for the price of a European put option is given by max[0, K*exp(-rT) - S(0) + D], where D is the lump-sum PV of the dividend. Where q is the continuous dividend, the lump-sum D=...